Jakarta - PT Henan Putihrai Sekuritas initiated PT MNC Energy Investments Tbk (IATA) with a buy rating at a target price of Rp390 per share.

"The target price represents a 70% potential return from the current price of Rp230," Henan Putihrai's research disclosed on Tuesday (4/26).

This price target is supported by the potential for a recovery in financial performance following the anticipated contributions from Bhakti Coal Resources (BCR) and Bhakti Migas Resources (BMR), which are expected to offset the current aviation businessy underperforming.

After the consolidation of BCR, IATA's revenue and EBITDA in the first quarter of 2022 were recorded at US$40.4 million and US$23.5 million, respectively. Net profit managed to recover to US$9.4 million from a loss of US$500,000 at the end of 2021.

"We project EBITDA and net profit in 2022 to reach US$233.4 million and US$93.35 million, respectively. Meanwhile, in 2023 EBITDA a