Analysts have slightly lowered their fair value estimate for Bank Mandiri (Persero) from IDR 5,479.67 to IDR 5,436.15, citing anticipated benefits from recent government liquidity injections that support the banking sector.
Analyst Commentary
Bullish analysts see the recent developments as enhancing the investment case for Bank Mandiri (Persero), with several key drivers supporting a positive outlook.
Bullish Takeaways- The government's planned liquidity injection is expected to support system-wide banking liquidity. This could improve Mandiri's ability to expand its lending activities.
- A price target upgrade to IDR 5,850 suggests confidence in the bank's earnings resilience and long-term value creation potential.
- Potential benefits from improved deposit stability may bolster Mandiri’s core funding base, helping to mitigate funding risks in a more uncertain macroeconomic climate.
- Analysts anticipate that regulatory support could provide Bank Mandiri with a competitive advantage over peers during periods of tighter market liquidity.
- Some analysts remain cautious about near-term execution risk, as the effectiveness and timing of liquidity injections are subject to broader economic conditions.
- Uncertainty persists around the sustainability of elevated valuation multiples if sector-wide challenges or macroeconomic volatility intensify.
- There is lingering concern about the bank’s ability to maintain asset quality if regulatory support proves insufficient or temporary.
Valuation Changes
- Fair Value Estimate has decreased slightly from IDR 5,479.67 to IDR 5,436.15.
- Discount Rate has risen marginally from 14.51% to 14.53%.
- Revenue Growth Projection has increased slightly from 11.60% to 11.64%.
- Net Profit Margin Estimate has declined modestly from 31.77% to 31.62%.
- Future P/E Ratio has fallen slightly from 12.51x to 12.46x.
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