BBRI and BMRI Stock Potential Rises as JP Morgan Upgrades Ratings Ahead of Dividend Season

JAKARTA, investortrust.id – JP Morgan has recently upgraded the ratings of PT Bank Rakyat Indonesia Tbk (BBRI) and PT Bank Mandiri Tbk (BMRI), signaling potential gains for these state-owned bank stocks. Currently, both stocks are trading below JP Morgan’s target price and those set by several other analysts.

JP Morgan analyst Harsh Wardhan Modi upgraded BBRI's rating from "overweight" to "neutral" with a target price of Rp 4,200 per share. During the first intraday trading session on the Indonesia Stock Exchange (IDX) on Tuesday, March 4, 2025, BBRI’s stock price rose by Rp 30 (0.82%) to Rp 3,700.

Prior to JP Morgan’s revision, two other securities firms had maintained a "buy" recommendation for BBRI. Sucor Sekuritas set a target price of Rp 5,300, stating that while BBRI's short-term stock movement remains challenging, its long-term potential remains attractive.

Similarly, Verdhana Sekuritas upheld its "buy" rating with a target price of Rp 5,000, based on a DuPont analysis considering a 6.5% risk-free rate, a return on equity (ROE) of approximately 9.3%, and a beta of 0.85.

BMRI Also Gains Favorable Outlook

JP Morgan also revised BMRI’s stock rating from "underweight" to "neutral," with a target price of Rp 5,100 per share. However, during the first intraday trading session, BMRI’s stock declined by Rp 30 (0.61%) to Rp 4,870.

Analysts at BRI Danareksa Sekuritas had previously recommended buying BMRI stock, setting a target price of Rp 5,900, taking into account the bank’s financial performance as of January 2025, which met expectations.

Sucor Sekuritas analyst Edward Lowis also issued a "buy" recommendation for BMRI, but with a higher target price of Rp 7,100. The firm noted that this target reflects BMRI’s estimated price-to-book value (PBV) of around 1.9 times for 2025, backed by strong asset quality and a solid deposit base.

Dividend Season Adds to Market Appeal

Beyond attractive target prices, BBRI and BMRI are also expected to deliver appealing dividend yields.

BBRI has scheduled an extraordinary general meeting of shareholders (EGMS) for March 24, 2025, to discuss the allocation of net profit for dividends, an update to its recovery action plan, and a share buyback worth Rp 3 trillion ($191 million).

For the 2023 fiscal year, BBRI distributed a total dividend of Rp 319 per share, comprising an interim dividend of Rp 84 and a final dividend of Rp 235 per share.

Meanwhile, BMRI will hold its annual general meeting of shareholders (AGMS) on March 25, 2025, with an agenda that includes approving the 2024 net profit allocation for dividends, updating the corporate recovery plan, restructuring its board of directors, and executing a share buyback.

For the previous fiscal year, BMRI distributed dividends amounting to Rp 33.03 trillion ($2.1 billion), representing 60% of its net profit, equivalent to Rp 353.95 per share.

With stock upgrades from major analysts and promising dividend payouts, investor sentiment for BBRI and BMRI remains strong in 2025.