STOCKS NEWS INDONESIA-CLSA cuts AKR Corporindo to 'outperform'

Wed Mar 27, 2013 3:52am EDT

CLSA Asia Pacific Markets slashed its recommendation on PT AKR Corporindo to 'outperform' from 'buy', saying the petrol logistics company's weaker fuel volumes led to soft 2012 results.

"AKR's FY12 results were softer than our expectations on lower fuel volume (5 percent year-on-year growth)... This leads to 18 percent and 9 percent earnings per share downgrades over the next 2 years," CLSA analyst Jayden Vantarakis said in a note on Wednesday.

However, the research house raised its target price on AKR Corp to 5,800 rupiah from 5,000 and said the company's integrated industrial estate and port project near Surabaya in East Java had lots of potential given Indonesia's lack of infrastructure.

"We have been bullish on AKR during the past year with the stock returning 39 percent since our upgrade... The next catalysts are more information on the integrated port project as the master plan is complete, and the completion of 18 fuel stations."

The stock was up 1.94 percent at 5,250 rupiah, while the broader index gained 1.66 percent.

1421 (0721 GMT) (Reporting by Andjarsari Paramaditha; Editing by Subhranshu Sahu)

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