Steady Momentum Could Soon Make Indonesia a “Buy”

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Steady Momentum Could Soon Make Indonesia a “Buy”

Analyst recommendations have gradually improved over the past five years, and now Indonesia is on the verge of a “buy” recommendation.

Learn more: How to Benefit from Our Watching the Street Charts

The top two stocks with the most positive recommendations are related to construction in Indonesia. Wijaya Karya Beton is a precast concrete manufacturer with a capitalization of $557 million.

Recommendations have improved over 5yrs and now #Indonesia is on the verge of a "buy"

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Bank Jatim is up 35% YTD, and Bank BJB is up 290%! After such large increases in value, both are currently receiving negative recommendations.

Consensus Earnings Estimates: Indonesia

Analysts’ expectations have hovered around 10-15% EPS growth, but Indonesia has seen 4 years of falling earnings.

Average earnings estimates for 2016 are lower this time at 5%.

Expectations have been 10-15% EPS growth, but #Indonesia has seen 4yrs of falling EPS

Though real estate developer Lippo Karawaci has among the most negative recommendations, it also has the highest EPS growth estimate, and its share price is down 30% YTD.

Bukit Asam has the worst EPS growth estimate, but the share price has gained about 180% YTD.

Consensus Target Prices: Indonesia

Target price expected returns and actual returns are currently in line for 2016. The 12-month forward target prices imply an expected return of 13%.

Target price expected returns and actual are currently in line for 2016 in #Indonesia

XL Axiata is part of one of the largest telecom groups in Asia, Axiata Group Bhd (AXIA.KL). Of AXIA’s listed group companies, all except the one in Sri Lanka has seen a share price loss of about 30% YTD.

Bank Jatim and Bank BJB are also found among the lowest expected returns, as they’ve performed well YTD.

 


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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of readin

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In 1992 Dr. Andrew Stotz, CFA, left a management career at Pepsi-Cola in California to teach finance in Thailand. In 1993, he found his life calling as a financial analyst, a job for which he was eventually voted #1 in Thailand. In the second half of his 20-year career in investment banking, Dr. Stotz was a Head of Research, leading teams of financial analysts. He served as a two-term president of CFA Society Thailand and now runs his firm, A. Stotz Investment Research, which provides research and tools for institutions and high-net-worth investors and helps CEOs make their companies financially world class.
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