UPDATE 1-Citi cuts Indonesia's Bumi target price to 8,300 rph
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JAKARTA, Aug 5 (Reuters) - Citigroup said it cut its target price for PT Bumi Resources Tbk (BUMI.JK), Indonesia's largest coal producer, to 8,300 rupiah ($0.914) a share from 9,600 rupiah previously, as it revised its forecast for the firm's earnings.
Bumi's share price dropped 4.9 percent on Monday to 5,850 rupiah, while the overall market fell 0.94 percent.
The stock hit an all-time high of 8,750 rupiah on June 10, but has plunged 33 percent since then due to a fall in coal prices, while the overall index .JKSE has lost about 6 percent.
Australia's thermal coal price, a benchmark for Asian coal has dropped to around a six-week low at about $160 per tonne.
"We are lowering Bumi's 2008-2010 earnings forecasts by 6-12 percent and slashing our target price to 8,300 rupiah, following weak first-half numbers," Citigroup analyst Erindra Krisnawan said in a research report.
Despite a 74.3 percent jump in its preliminary first-half net profit, some analysts have said that Bumi's results were below expectations.
Bumi's share price has fallen about 13 percent since the company announced its preliminary results on July 31. ($1=9,082 rupiah) (Reporting by Harry Suhartono, editing by Sara Webb)
