New Street: GOTO - Initiating with NEUTRAL Rating at IDR 295; Waiting on Execution
What’s New: We are initiating Goto Gojek Tokopedia PT (GOTO IJ) with a NEUTRAL rating at a PT of IDR 295, which implies 20.9x FY23E EV/Rev. Our neutral view is based on concerns about its path to profitability which hinges on execution of multiple drivers including 1) increase monetization rate; 2) increase user cross pollination; and 3) significant reduction in S&M and customer incentives. While we remain constructive about GoTo’s long-term potential in the Indonesia market, execution could be an opportunity (or a concern) whether the group would be able to maintain market share without having to remain aggressive in promotions and subsidies in a price sensitive environment.Analysts:
Jin Yoon
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