Indopremier BBCA (BUY TP Rp 4700)

BBCA with its unbeatable franchise value, its conservative management and its growth opportunity triggered us to place the bank as one of our favorite stock. Although in term of Price to Book (PBV) ratio it is one of the most expensive bank, we view that the market should give a premium to the bank which is proven in the turbulence condition. We also see that the management decision to choose consumer credit as a growth driver this year is the best choice given higher risk for corporate credit environment. We also see positive progress from UIB bank acquisition and two defaulters restructuring which will give it a bright future outlook. Finally, we increase BBCA’s target price to 4700, implying 2.8X PBV FY10 and 12.47 X PER FY10.