JP Morgan Increases Barito Pacific Share Recommendations

JP Morgan recently changed his views on PT Barito Pacific Tbk (BRPT) shares, from an underweight to a neutral one. The decision was motivated by a reduced selling pressure assessment of BRPT shares, along with Morgan Stanley Capital International (MSCI) index rebalancing.

"We ended our underweight recommendations on BRPT and switched to Neutral," wrote JP Morgan, in a research report on Tuesday, December 3.

JP Morgan's analyst team consisting of Arnanto Januri, Henry Wibowo, and Smedh Samant also explained that this decision reflects the risk and potential returns that are now more balanced.

In terms of financial performance, until the third quarter of 2024, BRPT has recorded revenues of USD 1.67 billion, net profit of USD 27 million, and total assets of USD 10.19 billion. JP Morgan's change in view of BRPT's shares reflects a positive assessment of the company's stability, despite the challenges of market dynamics.

JP Morgan also set a target price for BRPT shares at the level of IDR 870 per share until December 2025. This target shows optimism for the company's prospects.

On the other hand, JP Morgan also highlighted Barito Pacific's strategic steps to expand its portfolio to the industrial estate sector through its subsidiary, Griya Idol. This expansion is seen as a positive catalyst that can increase the company's value and expand its contribution to the Indonesian economy.

In line with the research report released by JP Morgan, some time ago PT Pemeringkat Efek Indonesia (Pefindo) gave BRPT an idA+ (Single A Plus) rating, with prospects that were considered Stable. Determination of this rating, based on an analysis from two Pefindo analysts, Ayuningtyas Nur Paramitasari and Kresna Piet Wiryawan.

"Obligors with idA ratings have a strong ability compared to other Indonesian obligors to fulfill their long-term financial commitments," explained Irmawati, President Director of Pefindo, in a rating report released.

Furthermore, Irmawati explained, the added sign (+) shows that the rating given is relatively strong and above the average category concerned.

This positive performance shows that BRPT is able to maintain its credibility in the market and create added value for investors, both through strategic expansion and effective risk management.

As for today's trading session, based on data from the Indonesia Stock Exchange (IDX), BRPT shares closed up 6.79 percent to Rp865 per share.