ASSA IJ / ASSA.JK | OUTPERFORM - Maintained | Rp285.00 - Tgt. Rp380.00

Adi Sarana Armada   | Stirred, not shaken

ASSA IJ / ASSA.JK | OUTPERFORM - Maintained | Rp285.00 - Tgt. Rp380.00

Mkt.Cap: US$95.60m | Avg.Daily Vol: US$0.60m | Free Float: 40.00%

Transport | Author(s): Soegiarto HADI, FRM,

Although rising borrowing rates could impact ASSA's growth in the immediate term, its long-term business outlook remains robust as rental demand is high and used Avanza/Xenia prices have seemingly bottomed. The stock is an attractive buy at current valuations. We cut our EPS targets to account for higher borrowing costs. We also lower our GGM-based target price (ROE: 18.5%, LTG: 7.5%) as we increase our risk-free rate assumption from 5.5% to 7.0% and cut our long-term ROAE assumption from 19.5% to 18.5%. Maintain Outper