Summarecon Agung's Growth Likely Underpinned by Strong Demand — Market Talk

Summarecon Agung's growth is likely underpinned by strong demand in its flagship Serpong project in Indonesia, say Maybank Sekuritas Indonesia analysts in a report. The real-estate developer looks well-positioned with resilient mid- to upper-segment demand supporting its Serpong township, the analysts say. Its Bandung township is also showing better traction, with pre-sales growing sharply, driven by robust demand in 'Ivora' and 'Genova' clusters. The brokerage maintains the stock's buy rating, but lowers the target price to 470.00 rupiah from 520.00 rupiah to reflect a higher equity risk premium amid weak sector sentiment. Shares are 1.8% lower at 332.00 rupiah. (ronnie.harui@wsj.com)