BRI Leadership Bought BBRI Shares, Shows Confidence in Future Performance

Rhea-AI Summary

On June 13, 2024, PT Bank Rakyat Indonesia (BBRI) disclosed that its top executives have been actively purchasing BBRI shares. Deputy CEO Catur Budi Harto, CFO Viviana, and Director of Micro Business Supari acquired a total of 723,300 shares recently, despite a 23% year-to-date stock decline.

Analysts from RHB Securities see potential for price increases, highlighting BBRI's sector-leading profit growth of 4.5% in the first four months of 2024, driven by a 12% loan growth and an effective cost of credit. They maintain a Buy rating with a target of Rp6,300, predicting a 40% rise. Bloomberg consensus also backs this with a target of Rp6,105.

Analysts from Macquarie and Ciptadana Securities have given buy recommendations with target prices of Rp6,630 and Rp7,000, respectively.

Positive

• BBRI executives purchased 723,300 shares, showing confidence.
• BBRI led Big Cap banks with 4.5% profit growth in the first four months of 2024.
• 12% year-on-year loan growth reported in April 2024.
• Cost of Credit (CoC) dropped to 3.7% in 4M24 and expected to drop below 3% for the year.
• RHB Securities analysts predict a target price of Rp6,300, a 40% potential increase.
• Bloomberg consensus and 33 analysts unanimously recommend buying BBRI stocks.
• Macquarie and Ciptadana Securities analysts provided target prices of Rp6,630 and Rp7,000, respectively.

Negative

• BBRI stock has faced a 23% year-to-date decline.

JAKARTA, Indonesia, June 13, 2024 /PRNewswire/ -- PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) directors have been actively buying BBRI shares, according to information disclosed to the Indonesia Stock Exchange (BEI) on June 12.

BRI's Deputy CEO, Catur Budi Harto purchased 230,000 BBRI shares on June 7^th, bringing his total holdings to 4,045,557 shares. On the same day, BRI's CFO, Viviana, also purchased 280,000 BBRI shares, bringing her total holdings to 3,659,500 shares. On June 10^th, the Director of Micro Business, Supari, purchased 213,300 BBRI shares, bringing his holdings to 4,970,914 shares.

"The transaction is for personal investment purposes," Agustya Hendy Bernadi, BRI's corporate secretary, said in response.

Despite a 23% year-to-date decline in BBRI stocks, the company continues to show strong growth. RHB Securities analysts Andrey Wijaya and David Chong, in their June 11, 2024, research, suggest a potential price increase, noting that the risks are already factored in.

BRI's financial report shows it led Big Cap banks with the fastest profit growth during the first four months of 2024, up 4.5% year-on-year. This increase, driven by robust loan growth and an effective cost of credit (CoC), included a 12% year-on-year loan increase in April. Analysts Andrey and David emphasized BBRI's sector-leading performance, "CoC for 4M24 dropped to 3.7% (3M24; 3.8%), with expectations to drop below 3% for the entire year. CASA and LDR ratios remain stable," they detailed in their research.

The 4.5% profit growth for the first four months of 2024 also met analysts' expectations, equivalent to 28% of the forecast for the year. Based on such promising potential, RHB Securities maintains and affirms a Buy recommendation for BBRI stocks with a target price of Rp6,300 per share, predicting a 40% potential increase, aligned with excellent performance.

Also, 33 analysts unanimously recommend buying BBRI stocks based on Bloomberg consensus. Not a single analyst recommends selling. All of them firmly gave a Buy rating. The Bloomberg consensus yields a potential target price of Rp6,105 per share for the upcoming 12 months.

Recently, Jayden Vantarakis, an analyst at Macquarie, gave a buy recommendation with a target price of Rp6,630 per share. Moreover, Erni M. Siahaan, an analyst at Ciptadana Securities, also gave a buy recommendation with a target price of Rp7,000 per share.

For more information on BRI, visit www.bri.co.id

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What recent actions have BBRI executives taken regarding their shares?

Top executives at BBRI, including Deputy CEO Catur Budi Harto, CFO Viviana, and Director of Micro Business Supari, have purchased a total of 723,300 shares recently.

How has BBRI's stock performed year-to-date?

BBRI's stock has faced a 23% decline year-to-date.

What is the profit growth rate for BBRI in the first four months of 2024?

BBRI reported a sector-leading profit growth rate of 4.5% in the first four months of 2024.

What are the loan growth figures for BBRI in April 2024?

In April 2024, BBRI reported a 12% year-on-year loan growth.

What target prices have analysts set for BBRI stocks?

RHB Securities set a target price of Rp6,300, Bloomberg consensus is Rp6,105, Macquarie's target is Rp6,630, and Ciptadana Securities set a target price of Rp7,000.

What is the Cost of Credit (CoC) for BBRI in the first four months of 2024?

The Cost of Credit for BBRI dropped to 3.7% in the first four months of 2024, with expectations to drop below 3% for the entire year.