Steady Momentum Could Soon Make Indonesia a ‘Buy’
Watch the video with Andrew Stotz or read Watching the Street: Indonesia below.
Consensus Recommendations: Indonesia
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.
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%.
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%.
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 reading this article.