Barito Pacific (BRPT) share buyback, what is the fair price for the shares?

ILLUSTRATION. Barito Pacific (BRPT) will buy back shares with a value of Rp 1 trillion.

Reporter: Akhmad Suryahadi | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. PT Barito Pacific Tbk (BRPT) declare that they will make a repurchase (buyback) shares by preparing Rp 1 trillion for this corporate action.

Quoting the disclosure of information on the Indonesia Stock Exchange website, Monday (28/9), the BRPT share repurchase period will take place between 29 September 2020 to 29 December 2020. The number of shares to be repurchased will not exceed 2% of the total issued capital. BRPT.

The management of BRPT said the implementation of the action buyback This stock will not have a significant negative effect on BRPT’s performance and earnings. This is because BRPT’s current retained earnings and cash flow are sufficient for the funds needed to do so buyback stock.

“Program buyback This is expected to send a positive signal and is done as a form of the corporation’s seriousness in maintaining level of confidence investors against Barito Pacific, “said David Kosasih, Finance Director of Barito Pacific to Kontan.co.id, Wednesday (30/9).

Also Read: For a share buyback, Barito Pacific (BRPT) has prepared Rp 1 trillion in funds

As of today’s closing, BRPT’s shares rose 15.33% to the level of Rp 790. However, since the beginning of the year or on a year-to-date basis, the shares of the Prajogo Pangestu tycoon issuer are still corrected by 47.68%.

Actually, how much is a fair price (fair value) current BRPT shares?

Mirae Asset Securities analyst Lee Young Jun recommends hold BRPT shares with a target price of Rp 700. “Which means, the current BRPT price is quite reasonable,” said Young Jun to Kontan.co.id, Wednesday (30/9). Previously, Mirae Asset issued a selling recommendation (sell) BRPT shares with a target price of IDR 650 per share.

Also Read: Mirae Asset Sekuritas raises recommendation on Barito Pacific (BRPT) shares