September 18, 2012 / 6:15 AM / 5 years ago

STOCKS NEWS INDONESIA-Credit Suisse ups United Tractors to outperform

Credit Suisse upgraded shares of Indonesian heavy machinery maker PT United Tractors Tbk to ‘outperform’ from ‘neutral’, citing the positive effect the U.S. Federal Reserve’s QE3 would have on coal prices.

“We have seen historically that when QE2 was announced, UNTR’s stock price rallied by 19 percent within two months,” Credit Suisse analyst Dian Haryokusumo wrote in a note on Tuesday.

“The P/E valuation at QE2 announcement was 13.3x, which was similar to the current valuation. We believe that QE3 will provide potential positive sentiment on the coal price in the medium to short-term, and that UNTR’s stock price tracks coal price,” Haryokusumo said.

The research house raised United Tractors’ target price to 28,000 rupiah from 23,000 rupiah per share.

Shares of the company were down 0.88 percent at 22,500 rupiah, while the broader index was down 0.40 percent.

1312 (0612 GMT)

(Reporting by Andjarsari Paramaditha in Jakarta)

**************************************************************** 12:39 STOCKS NEWS INDONESIA-CLSA cuts Bumi Serpong Damai target price

CLSA Asia-Pacific Markets cut its target price on shares of Indonesian property developer PT Bumi Serpong Damai Tbk to 1,400 rupiah from 1,800 because of uncertainty over its purchase of an industrial estate and expectations of lower profits in the next two years due to interest payments on a recent bond issue.

The profit forecast was cut by 2-5 percent, CLSA analyst Sarina Lesmina wrote in a note on Tuesday.

But CLSA maintained its ‘buy’ rating on the stock, saying Bumi Serpong’s shares trade at below replacement value.

Bumi Serpong’s operational performance is good but the company’s share price performance has been weak in the past quarter because of uncertainty over its acquisition of Deltamas industrial estate, which is awaiting approval from the estate’s operator, Japan’s Sojitz. Sojitz holds a 25 percent stake.

Deltamas has a 2,200 hectare land bank. The estate, expandable to 3,000 hectares, was started around 10 years ago with mostly Chinese companies as tenants.

The property company’s shares were down 1.92 percent at 1,020 rupiah, while the broader index was down 0.47 percent. 1130 (0430 GMT) (Reporting by Andjarsari Paramaditha)

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