Jakarta (ANTARA) - Samuel Sekuritas Indonesia analyst Muhammad Farhan raised the recommendation on GoTo Gojek Tokopedia (GOTO) to buy from hold. In its newly launched report, titled “Return of A Fallen Giant”, Farhan believed that despite the decline of more than 75% since its IPO price, GOTO still has so much potential for investors to accumulate its stock.

His underlying belief is due to the the positive top-line of Q4 in 2022 and its prospect to achieve profitability faster than its initial target.

The company has reported the achievement of positive contribution margin for On-Demand Segment in September, faster than its initial target in Q1 2023. The company also aimed to achieve positive contribution margin for Gojek and GoTo Financial in 2Q23.

Furthermore, Tokopedia’s increasing take-rate and improving efficiency will also contribute to GOTO’s revenue.

“In previewing GOTO’s performance in the 4th quarter and the full year of 2022, we see there are several positive factors. First, the recent lay-off can help GOTO to reduce its salary expenses around IDR 477 billion in 4Q22. Furthermore, GOTO can also double the take-rate to 2.8% by reducing promotion spending and focused on the loyal and quality users that contribute to its GTV despite the promo,” wrote Farhan in the report.

The Jakarta-based securities foresees that GOTO may record IDR 187 trillion for its GTV and 4.8 trillion for its revenue in 4Q22. However, he also cautioned the possibility of the increased promotion spending from Tokopedia as it still has to compete with Shopee and TikTok Shop.

Samuel Sekuritas increased its rating to BUY with target price IDR 130 that indicates 7.01x EV/ Sales FY23F.

Reporter: PR Wire
Editor: PR Wire
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