STOCKS NEWS INDONESIA-UBS raises Bank Negara Indonesia target price
UBS Investment Research raised its target price on shares of PT Bank Negara Indonesia Tbk to 4,950 rupiah from 4,800 rupiah and kept 'buy' rating on the stock, citing higher earning per share (EPS) estimates and stronger productivity.
"We upgrade our EPS estimates by 3% to 6% as we have become more positive with the fee income story, and are more aware of the bank's lending and funding strategies. We are also more convinced of BNI likely productivity gains, a key investor pushback," UBS analyst Joshua Tanja wrote in a note on Thursday.
"Customer transactions at BNI are increasingly done through the electronic channels. The increased use of commissioned-based agents for consumer banking and the focus strategy on key industries for business banking should also lead to productivity gains" Tanja said.
Shares of the state-owned lender stayed at 3,950 rupiah, while the broader index was up 0.59 percent.
0957 (0257 GMT) (Reporting by Andjarsari Paramaditha)
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