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JPMorgan upgraded Saratoga Investama Sedaya (SRTG:IJ) from neutral to overweight on Wednesday, while adjusting its price target to IDR2,300.00 from IDR2,500.00.
The investment firm cited the company’s attractive discount to net asset value (NAV), which is approaching approximately 60%, noting that Saratoga’s share price has lagged behind the rebound seen in its investee companies.
JPMorgan highlighted Saratoga’s position as an indirect beneficiary of the recent gold price rally through its 20% stake in PT Merdeka Gold Copper Tbk (MDKA), which offers potential value-unlocking corporate actions.
The firm also pointed to an additional boost from Saratoga’s new 14% stake in PT Adaro Andalan Indonesia Tbk (AADI) following a spin-off from PT Alamtri Resources Tbk (ADRO), which contributes approximately 16% to Saratoga’s NAV.
JPMorgan described Saratoga as "a unique conglomerate/private equity play in Indonesia" with diversified exposure across key sectors including energy, metals, telecoms, data centers, automotive, and healthcare, supported by a prudent balance sheet approach with less than 5% net debt to equity in the first quarter of 2025 and "a solid management track record under the Soeryadjaya family."
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