For its 3QFY2023 ended September, GoTo is guiding for its gross transaction volume q-o-q growth momentum to return to positive territory, largely driven by a series of product launches. This includes low-cost ride services GoRide Hemat, premium ride services GoCar Luxe, subscription model GoFood Plus, cheaper food delivery service GoFood Hemat and the GoPay standalone app. The successful launch and execution of these new product initiatives can drive the growth trajectory upwards, says Wibowo.
JP Morgan has initiated an “overweight” on GoTo with a target price of IDR135 (1.2 cent), viewing the company as a proxy for Indonesia’s digital economy and growing middle class.
According to analyst Henry Wibowo, JP Morgan’s positive view on the company is premised on its status as the local digital economy champion, in a country with a supportive macro backdrop backed by a 270 million population. The analyst also sees GoTo as the digital economy beneficiary of a potential rate cut in 2024.
