STOCKS NEWS INDONESIA-Citi cuts Astra Intl target price
Citi Research slashed the target price of PT Astra International Tbk to 7,000 rupiah from 7,700 and kept its "neutral" rating, citing lower earnings estimate for 2013-2014.
The research house lowered Astra's earnings forecast for 2013 by 10 percent and for 2014 by 6 percent citing cuts in earnings estimates for machinery unit United Tractors and palm oil plantation Astra Agro Lestari.
"We are still positive on Astra's medium to long-term outlook due to solid governance and likely beneficiary of the rising middle income class. However, we could see downside risks for its two commodity- related growth engines (UNTR and AALI) in the near-term if coal and CPO prices remain weak," Jakarta-based Citi head of research Ferry Wong said in a note on Monday.
Last month, the Indonesian conglomerate said first-half 2013 net profit fell 9.3 percent due to declining margins as competition heats up among automakers in Southeast Asia's biggest economy.
Shares of Astra were down 1.49 percent at 6,600 rupiah. The broader index was down 0.65 percent.
1129 (0429 GMT) (Reporting by Andjarsari Paramaditha,; Editing by Sunil Nair)
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