Reuters: Hot Stocks: STOCKS NEWS INDONESIA-Indopremier initiates telecom with 'neutral'

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

STOCKS NEWS INDONESIA-Indopremier initiates telecom with 'neutral' Aug 31st 2012, 07:04 Fri Aug 31, 2012 3:04am EDT Indopremier Securities initiated coverage on the Indonesian telecommunications sector with a 'netural' rating, and chose PT Telekomunikasi Indonesia (Telkom) as its top pick with a 'buy' rating due to its dominant market share. "At current GDP per capita, Indonesia's internet penetration stands at around 13 percent of total population. If IMF is right, Indonesia GDP/capita should reach $5,000 level within only the next four years," it said in a report. Indopremier said the number of internet subscribers in Indonesia should increase by at least 29 million in four years and sees Telkom thriving in this environment due to its significant investments in infrastructure. Indopremier set a target price of 10,800 rupiah per share for Telkom. It also put a 'hold' rating on PT XL Axiata, the country's third's biggest telecom firm, despite its speedy execution of infrastructure development projects as its future potential has been priced in. However, the brokerage firm gave the nation's second biggest telecom firm PT Indosat a 'sell' rating as it needs to catch up with rivals in terms of infrastructure development. Indopremier set XL Axiata's target price at 7,000 rupiah per share and that of Indosat at 4,350 rupiah. Telkom shares were steady at 9,300 rupiah at 0128 local time (0628 GMT) on Friday, while shares of XL Axiata fell 0.75 percent to 6,650 rupiah and Indosat shares dropped 2.86 percent to 5,100 rupiah. The Jakarta Composite Index was down 0.5 percent at 0630 GMT. 0130 (0630 GMT) (Reporting by Jakarta Bureau; Editing by Sunil Nair; janeman.latul@Thomsonreuters.com) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions