Indofood CBP | ICBP
Don’t bite into the stock just yet
Maintained | Rp8,300.00 - Tgt.
Food & Beverages | by Irenne ACHMAD
▍Faster new product launches for noodle and snacks, particularly, could speed up revenue growth. However, such a strategy could lead to higher A&P expenses that curtail margin expansion. This and the lack of near-term catalysts are reasons why we stay Neutral on ICBP.
We fine-tune our FY12-13 EPS and raise our FY14 number by 7% to factor in contributions from noodle volume growth and a new JV. This increases our target price to Rp8,300, which is based on 16.8x FY14 P/E, a 10% premium to parent INDF’s target FY14 P/E multiple.
The target price implies an FY13 P/E of 19.3x. We still prefer INDF for its lower multiple and see more value to be reaped at the parent company level.
me @ LOTS Trading Club (LTC)
Don’t bite into the stock just yet
Maintained | Rp8,300.00 - Tgt.
Food & Beverages | by Irenne ACHMAD
▍Faster new product launches for noodle and snacks, particularly, could speed up revenue growth. However, such a strategy could lead to higher A&P expenses that curtail margin expansion. This and the lack of near-term catalysts are reasons why we stay Neutral on ICBP.
We fine-tune our FY12-13 EPS and raise our FY14 number by 7% to factor in contributions from noodle volume growth and a new JV. This increases our target price to Rp8,300, which is based on 16.8x FY14 P/E, a 10% premium to parent INDF’s target FY14 P/E multiple.
The target price implies an FY13 P/E of 19.3x. We still prefer INDF for its lower multiple and see more value to be reaped at the parent company level.
me @ LOTS Trading Club (LTC)
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