JAKARTA, Investor.id – The inclusion of PT Dayamitra Telekomunikasi Tbk (MTEL) or Mitratel shares in the FTSE Equity Global Index is a positive sentiment towards price movements. This could attract more foreign investors to buy shares in the telecommunications tower company.
CSA Research Institute Senior Analyst Reza Priyambada said the FTSE Equity Global index or FTSE GEIS is one of the global indices that is used as a reference for investment internationally. MTEL is included in the FTSE Global Index for the Mid-Cap series, FTSE All-World, FTSE All-Cap, and FTSE Total Cap, the only Indonesian stock exchange that was included in these 4 categories on 20 June 2022 yesterday.
“The inclusion of these shares in the FTSE Index can be a positive sentiment for MTEL stock movements. This issue also encourages foreign investors to accumulate company shares,” explained Reza Priyambada.
Reza said that Mitratel is fundamentally a strong company, seen from its strong net cash, positive financial performance growth, and very attractive business potential amid the expansion of the telecommunications industry in Indonesia. MTEL is also holding a buyback worth a maximum of Rp 1 trillion with a maximum purchase price of Rp 801/share, of course this is a positive catalyst for management’s confidence in the Company’s valuation. Reza recommends buying MTEL shares with a target price of Rp 900 per share.
Meanwhile, Samuel Sekuritas Indonesia analyst Yosua Zisokhi said that Mitratel’s financial performance is predicted to continue to grow in the next few years. This growth can be seen from the realization of the company’s financial performance in the first quarter of 2022.
Mitratel recorded a net profit growth of 21.4% supported by the addition of new tenants and the minimal increase in operating expenses. “We estimate that MTEL’s growth potential in the future is still large, supported by the large number of towers (28,577 units) and the tenancy ratio which has only reached 1.51x. We still maintain the recommendation to buy MTEL shares with a target price of Rp 915,” he said in research published in Jakarta.
The growth in financial performance, he said, will also be supported by the continued addition of telecommunication towers and tenants this year. The company budgets revenue to grow 10-11% yoy, with EBITDA growth lifting 13%.
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Sumber : Investor Daily