Analyst: Mitratel Shares Recommended Buy

Illustration. (Photo: Doc. Antara)

JAKARTA - Shares of PT Dayamitra Telekomunikasi Tbk (MTEL/Mitratel) are recommended to "buy" with a target price of Rp1,150 per unit. The target is 43.75 percent above the initial public offering (IPO) price on the Indonesia Stock Exchange (IDX), amounting to Rp800 per share.

According to IDX data, MTEL's shares on the IDX Regular Market, Friday, December 3, closed at Rp. 785 per share, stable compared to the closing price the day before.

Mohammad Fakhrus Arifin and Pandu Anugrah, capital market analysts at PT BCA Sekuritas said in a recent research report, December 2, that the recommendation was supported by MTEL's performance during 2019 and 2020.

According to BCA Sekuritas research, MTEL's revenue increased by 16.13 percent from Rp. 5.33 trillion to Rp. 6.19 trillion, MTEL's operating profit grew 27 percent from Rp. 1.33 trillion to Rp. 1.69 trillion in 2020.

MTEL's EBITDA also grew 58.55 percent to Rp4.17 trillion in 2020, from Rp2.63 trillion in 2019.

"MTEL's net profit increased by 11.77 percent from IDR 637 billion in 2019 to IDR 712 billion in 2020," said the two analysts, in a statement, Tuesday, December 7.

The two analysts also estimate that MTEL's revenue in 2022 is IDR 8.45 trillion, 19.69 percent higher than the 2021 revenue forecast of IDR 7.06 trillion.

"We estimate that MTEL's net profit will increase 51.90 percent to IDR 2.40 trillion in 2022, from an estimated profit of IDR 1.58 trillion in 2021," said the two analysts. Going forward, MTEL still has bright prospects, considering the telecommunications infrastructure business With the large development of the telecommunications industry supported by the massive digital business, tower rental growth outside Java will be high in the future, especially with the operator's desire to expand coverage, especially outside Java.