GoTo Group jumped Tuesday as investors focused on valuation after recent sharp declines and Indonesia’s bourse said it’s monitoring the stock’s movements.
(Bloomberg) — GoTo Group jumped Tuesday as investors focused on valuation after recent sharp declines and Indonesia’s bourse said it’s monitoring the stock’s movements.
The Indonesian tech startup fell as much as 6.9% before rebounding 24% to 108 rupiah, snapping a 16 straight session of losses. The nation’s stock exchange said it will closely monitor the stock after unusual sharp declines.
UBS Group AG and PT BNI Sekuritas said the stock is a buy after a recent expiry of a lockup triggered a sharp selloff, taking a slide since its April debut to more than 70%.
GoTo is still trading at higher valuations compared to regional peers, but its “premium vs. peers has narrowed, making valuations attractive,” UBS AG analysts including Navin Killa wrote in a note.
(Updates with analyst comments)
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