Reuters: Hot Stocks: STOCKS NEWS INDONESIA-Macquarie raises Unilever Indonesia to 'neutral'

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STOCKS NEWS INDONESIA-Macquarie raises Unilever Indonesia to 'neutral' Sep 12th 2012, 05:15 Wed Sep 12, 2012 1:15am EDT Macquarie Equity Research raised household consumer goods producer PT Unilever Indonesia Tbk to 'neutral' from 'underperform', citing a solid earnings outlook and steady long-term valuation. The company's share has delivered 34.5 percent compound annual growth returns, the highest in Unilever Indonesia's history, Macquarie analyst Lyall Taylor said in a note on Wednesday. "We still believe UNVR to be very aggressively valued long-term and we are not at all tempted to upgrade to 'outperform'. However, we believe the trigger for a major structural de-rating to be largely absent, and in the mean time, Unilever's earnings growth will slowly "burn off" its multiple. In short, we now believe an extended period of sideways action is a more likely outcome of Unilever high valuation than a sharp de-rating," Taylor added. The research house also raised its target price on Unilever Indonesia to 26,000 rupiah from 17,500 rupiah per share, backed by an increase in its full-year 2012-2013 earnings target for the company to 4.5 percent from 3.5 percent. At 11:52 p.m. (0452 GMT) the company's shares were 0.18 percent lower at 27,950 rupiah, while the broader index was up 0.05 percent.

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