Reuters: Hot Stocks: STOCKS NEWS INDONESIA-Kim Eng raises BNI target price on loan growth

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STOCKS NEWS INDONESIA-Kim Eng raises BNI target price on loan growth Aug 9th 2012, 05:57 Thu Aug 9, 2012 1:57am EDT Maybank Kim Eng raised the target price of PT Bank Negara Indonesia Tbk shares to 5,100 rupiah from 5,000 rupiah, saying Indonesia's fourth largest lender's first-half net profit was backed by significant loan growth. "1H12 net profit was supported by notable loan acceleration in June, which increased to 10 percent YTD vs. 5 percent YTD in May. Thus, the bank is back on track to meeting the management's target of 18-20 percent YoY by YE12," Maybank Kim Eng analyst Rahmi Marina said in a note on Thursday. Maybank Kim Eng also kept BNI rating on 'buy', saying the stock is the cheapest alternative among big banks and that it has solid fundamentals that can support medium-term growth with an upside potential of 35 percent. At 1207 pm. (0507 GMT) the bank's shares were up 0.66 percent at 3,800 rupiah while the broader index was up 0.89 percent. 1239 (0539 GMT) (Reporting by Andjarsari Paramaditha) **************************************************************** 12:38 STOCKS NEWS INDONESIA-UBS sees tenancy playing key role in tower sector UBS Investment Research says it expects tenancy to play a key role in the Indonesian tower sector, and sees an increase in outsourcing by telecom operators to tower companies. "There is a structural shift among operators to outsource to tower companies with tenancies growing at a 39 percent CAGR over 2008-11, a trend we expect will continue in the medium term," UBS wrote in a note on Thursday. UBS said its top pick in the sector is PT Tower Bersama Infrastructure Tbk and raised its price target to 5,700 rupiah from 3,560 rupiah. It also raised its price target on PT Sarana Menara Utama Tbk to 22,600 rupiah from 15,200 rupiah. "Although we like both companies, we think TBIG has a better relationship with operators such as Telkomsel and Indosat. However, TOWR also has a good diversification story, with XL Axiata and Indosat being the new primary customers for its build-to-suit towers," UBS said. By 11:35 a.m. (0535 GMT), both Tower and Sarana shares were unchanged at 3,950 rupiah and 18,200 rupiah per share. The broader index was up 0.77 percent. 1136 (0536 GMT) (Reporting by Andjarsari Paramaditha,) Link this Share this Digg this Email Reprints

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