GoTo Could Face Speed Bumps on Road Toward Profitability — Market Talk

About this update from Pt Goto Gojek Tokopedia Tbk

GoTo Gojek Tokopedia could face some slowdown in earnings growth due to regulatory changes in Indonesia, Maybank analyst Etta Rusdiana Putra writes in a note. The government plans to reduce the amount of commission that ride-hailing companies can collect, but there is limited visibility on the details of the policy, Putra says. The margin squeeze from the new policy, which could impact short-term operations, is likely to slow down GoTo's path toward profitability, Putra adds. The competitive landscape with Shopee and Grab is also intensifying, Putra adds. Maybank retains a buy rating on the stock but cuts its target price to 80 rupiah from 120 rupiah. The Indonesia market is closed Thursday for a holiday. ([email protected])

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