The analyst believes that the discount is fair given the group’s coal reserves are about four to 10 times smaller than other Indonesian coal miners.
SINGAPORE (Sept 11): KGI is initiating a “buy” rating on Geo Energy Resources (GEO), the coal mining company, with a fair value price of 36 cents.
In a Monday report, analyst Joel Ng says, “Our fair value is an implied 6.4 times FY17 forward earnings and 5.0 times FY18 forward earnings, a 25-40% discount to its larger-sized peers.”
