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
"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