Target Price of Antam Shares IDR8,500
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Wednesday, 21 November 2007 10:30:50
StockWatch (Jakarta) - Shares of state mining company PT Aneka tambang Tbk
(ANTM) are expected to rise at target price of IDR8,500 in the next 12 months
based on the corporate actions which the company is going to take.
BNI Securities' analyst Norico Gaman said that based on the valuation, the
company has excellent business condition that will lead the shares to increase
in the time to come. ANTM currently trades at dengan P/E of 8.5x based on the
2007 net profit projection and 8.1x based on the 2008 net profit projection.
Norico Gaman said Aneka Tambang (Antam) is making an evaluation in an effort to
buy 7% stake of NTT, for which Antam has received a commitment from three
national banks to provide loan of totally US$1.25 billion. Besides, the company
ahs received support from the State Enterprise Ministry to acquire NTT.
The analyst said the acquisition will strengthen Antam's business, and besides,
the company is expected to increase gold production by acquiring a gold mining
firm while producing nickel and bauxite. That is why, when the acquisition plan
is implemented the company will have a higher value.
He said further that Antam's revenue and net profit are likely to have a strong
growth along with increasing prices of mining commodities and the company's
higher sales volume.
Meanwhile, Asia's economic growth is expected to help boost Antam's business
growth amid increasing demands for mining products from Asian countries like
China, India, Soutj Korea, Taiwan and Japan. (esta/bud)
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