Foreign investors buy GOTO shares for IDR 70 billion, this is the target price

Jakarta –

Foreign investors bought shares of PT GoTo Gojek Tokopedia Tbk (GOTO) last week reaching IDR 70 billion. On August 14, foreign investors bought up IDR 25 billion in GOTO shares per day.

Meanwhile, the Indonesia Stock Exchange (BEI) noted that in trading at 11.00 WIB this Thursday, GOTO shares rose 1.89% with a value of IDR 54 per share and traded at IDR 29 billion with a trading volume of 540 million shares.

In trading last Wednesday (14/8), GOTO shares were at the top with transactions reaching 3.03 billion shares or 17.44% of the total shares traded on the IDX.

On the other hand, GOTO shares rose in the past week as well. In the last five trading days, GOTO shares rose 8% and in the last month they rose 6%.

Previously, in its performance report at the end of July 2024, GOTO recorded a net income reaching IDR 7.74 trillion in the I-2024 semester. This figure increased by 12.4% from the same period in June 2023 of IDR 6.88 trillion.

GOTO was also able to reduce the net loss attributable to the parent by 62.3% to IDR 2.7 trillion, from the previous net loss of IDR 7.16 trillion.

“This good performance record is supported by the growth of users in the economic service sector from On-Demand Services (Gojek), increased use of the GoPay application, growth in lending and disciplined management of business expenses,” he wrote GOTO management, in its written statement.

The latest research from PT Samuel Sekuritas recommends buying GOTO shares with a target price of IDR 80/share. Samuel Sekuritas assesses GOTO’s performance, especially in the second quarter of 2024, as a strength as it managed to reduce the group’s adjusted EBITDA loss to the remaining IDR 48 billion. This is supported by a contribution margin of IDR 1.2 trillion or up 145.1% YoY and up 5.5% quarter on quarter (QoQ).

“This (growth) is due to the launch of GojekPlus+, which increases the overall appeal to users with minimal promotional costs and marketing and sales costs,” wrote two analysts Samuel Sekuritas, Farras Farhan and Laurencia Hiemas .

His party estimates that the business opportunities of GOTO in the future, especially in the second semester, launch full services buy now pay later (BNPL), which helps increase revenue and profits for fintech businesses through GoTo Financial (GTF).

In addition, GOTO’s partnership with TikTok, which allows TikTok users to order food through GoFood directly from the TikTok app, is also expected to generate additional revenue.

However, Farras and Laurencia said that what management should pay attention to are the seasonal factors that could affect the performance of e-commerce in the second quarter of 2024.

“Furthermore, the company’s original margins declined due to changes in product mix, even though the strategy used was based on the mass market.”

In addition, there is competition in the market in particular and economic fluctuations that affect consumer behavior and consumption.

(are/are)