JAKARTA, Investor.id – The inclusion of PT Dayamitra Telekomunikasi Tbk (MTEL) or Mitratel shares in the FTSE Equity Global Index is a positive sentiment regarding its 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 Global Equity 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 is included in these 4 categories on June 20 2022 yesterday.
“The inclusion of these shares in the FTSE Index could be a positive sentiment for the movement of MTEL shares. “This issue also encourages foreign investors to accumulate company shares,” explained Reza Priyambada.
Reza said, fundamentally Mitratel is classified as a strong company, looking at strong net cash, positive financial performance growth, and very attractive business potential amidst the expansion of the telecommunications industry in Indonesia. MTEL is also holding a buyback worth a maximum of IDR 1 trillion with a maximum purchase price of IDR 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 IDR 900 per share.
Growing Trends
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 net profit growth of 21.4% supported by the addition of new tenants and minimizing the increase in operating expenses. “We imagine that MTEL’s future growth potential is still large, supported by its large number of towers (28,577 units) and a tenancy ratio that has just reached 1.51x. “We still maintain our recommendation to buy MTEL shares with a target price of IDR 915,” he said in research published in Jakarta.
Growth in financial performance, he said, will also be supported by the continued addition of telecommunications towers and tenants this year. The company budgets revenue to grow 10-11% yoy, with EBITDA growth rising 13%.
Sumber : Investor Daily
