STOCKS NEWS INDONESIA-Nomura cuts Adaro Energy target price
Nomura Equity Research lowered its target price on shares of coal miner PT Adaro Energy Tbk to 1,660 rupiah from 1,950 after cutting its full-year earnings forecast for the company.
"We cut our 2013-14F earnings forecasts by 46.8-56.2 percent to $148-190 million due to our lower coal price assumptions of $84-85/ton. Our analysis suggests that for every 1 percent decline in our 2013-14F coal price assumptions, our earnings forecasts would be down by 4.3 and 7.6 percent," Nomura analyst Isnaputra Iskandar said in a note on Monday.
However, the research house maintained its "buy" rating, saying potentially stronger coal prices in the fourth quarter due to seasonality factors and continued improvements in cost efficiencies would be the main catalysts for the stock.
Shares of Adaro slid 3.75 percent to 770 rupiah, while the broader index fell 3.82 percent.
1120 (0420 GMT) (Reporting by Andjarsari Paramaditha; Editing by Anupama Dwivedi)
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