INDO - Indonesia Energy Corp (INDO) - Rating raised in response to stock price weakness
We are raising our rating back to Outperform in response to share price weakness. The shares of INDO, which had risen as high as $87, have fallen back to a price near $7. We maintain that a fair value for the shares is around $15 which we have reinstated as our price target.The decline is an overreaction to recent oil price declines and economic concerns. The share rose from $7 to $86 over a two week period in late February/early March as speculators began trading the stock, leading us to downgrade the stock to Market Underperform. The shares then fell to the mid teens over the next three months as speculators exited the stock, allowing us to adopt a neutral stance on the stock. We believe the decline from mid teens to the current price reflects the recent decline in oil prices and concerns regarding global economic weakness, but is an overreaction to the actual impact on INDO. Read More >>