JP Morgan Drops Gojek Tokopedia (GOTO) Shares, Here's the Analysts' Recommendation

ISSUER NEWS - JAKARTA. Several multinational financial service companies have been observed selling shares of PT GoTo Gojek Tokopedia Tbk (GOTO) recently. 

Throughout trading on Thursday (25/1), foreign investors recorded a net sell of IDR 19.34 billion. So far this year, foreigners have also recorded a net sell worth IDR 119.78 billion. 

Citing data from Bloomberg, JP Morgan has reportedly sold 625.91 million shares as of Thursday (25/1). This value is equivalent to 0.09% of JP Morgan's ownership in this technology company. 

As a result, JP Morgan's share ownership in GOTO reached 1.04 billion shares. However, this composition did not fall too much compared to the position in the fourth quarter of 2023. 

Upon further examination, JP Morgan's ownership in GOTO is shrinking. In the first quarter of 2023, JP Morgan still held 32.97 million GOTO shares. 

 

JP Morgan also continued to accumulate until the second quarter of 2023. In the second quarter of 2023, the ownership of the American company increased to 3.08 billion. 

However, JP Morgan reversed the direction. In the third quarter of 2023, JP Morgan's ownership in GOTO was only 1.47 billion left. The selling action continued until the fourth quarter of 2024, which was left with 1.04 billion. 

Not only that, Deutsche Bank AG's ownership was also observed to shrink. In the fourth quarter of 2023, this German company still held 861.93 million, but as of Thursday (25/1) only 117.46 million remained. 

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Reza Priyambada, Investment Consultant at Reliance Securities, said that the sale of shares by foreign investors usually becomes a negative sentiment for market players. 

"It can become a negative sentiment because it is considered that foreign investors' confidence is starting to decline towards the company's condition, even though not in reality," he said to Kontan, on Wednesday (24/1).

However, Reza said there could be other factors influencing the decision of these foreign investors. For example, the need for funds to rebalance portfolios from foreign institutions.  

Senior Investment Information at Mirae Asset Securities, Nafan Aji Gusta, said technically, GOTO shares are already undervalued even though fundamentally they are still under pressure.

"However, from a fundamental perspective, GOTO has managed to make progressive improvements. It is hoped that GOTO can profit in line with the stability and growth of domestic consumption," he said.

Nafan said GOTO's prospects will also be boosted by the presence of TikTok in the GOTO group ecosystem. The hope is that the collaboration between TikTok Shop and Tokopedia can dominate the e-commerce market share. 

Technically, Nafan recommends accumulating GOTO with a target price of IDR 116. In the short term, GOTO is still in a bearish consolidation in the range of IDR 81 to IDR 92. 

Meanwhile, Reza recommends holding GOTO with a target price of IDR 89. Until the end of trading on Thursday (25/1), GOTO parked at the level of IDR 84 per share or closed flat compared to the previous day.