CIMB Bank Central Asia Company update - Capped upside

(BBCA IJ / BBCA.JK, NEUTRAL - Maintained, Rp3,525 - Tgt. Rp3,600, Financial Services)

BCA's recent 4% share placement cannot be compared with Danamon's earlier placement, in our view. Danamon's placement was followed by a share-price re-rating, as its shares were not placed out by a controlling shareholder, unlike BCA's. That BCA's placement was not absorbed by the other Farindo consortium members supports our view that valuations are quite stretched. We still believe that BCA could eventually be sold, but not soon. BCA's share performance correlates positively with changes in the SBI rate. As such, we see few catalysts for the stock to outperform its peers as interest rates decline. Maintain Neutral with an unchanged DDM-based target price of Rp3,600.