by Bahana Securities
Recommendation & valuation: Overweight–BUY BBRI, BBNI & BBCA.
At this stage of the cycle, we continue to recommend investors to focus on banks with strong deposit franchises such as BBRI, BBNI and BBCA. Against a backdrop of intensifying competition, we also believe banks with captive markets will excel next year. Despite the recent rise in banks’ share prices from their bottom on 14 October, the sector’s valuation remains attractive on 2012 P/BV of 2.8x. Thus, we retain a sector OVERWEIGHT.