Analysts Recommend Buying INDF Shares, Target Price Rp8,200, Here's Why
Ciptadana Sekuritas has maintained its Buy recommendation for INDF shares with a target price of Rp8,200 per share. See the analysts’ reasons and the latest performance data here.
PT Indofood Sukses Makmur Tbk (INDF) has once again received a Buy recommendation from Ciptadana Sekuritas Asia in an equity research report released on 13 April 2026. Analysts have set a target price of Rp8,200 per share, representing a potential increase of around 22.4% from the last closing price of Rp6,700 per share.
Here are the main points forming the basis of this recommendation, according to the research.
CBP Segment: Product Innovation as a Support
The Consumer Branded Products (CBP) division, operated through ICBP, recorded the launch of more than 60 new products throughout 2025, returning to pre-pandemic levels. This step drove annual (year-on-year/YoY) sales growth of 3.3%, mostly supported by volume growth. Management has not raised the average selling price (ASP) in early 2026, but an ASP increase in Q3–Q4 2026 is still an option if cost pressures continue.
Agribusiness Grows Strongly, Supported by CPO Prices
The agribusiness segment recorded YoY revenue growth of 31.8% in 2025, driven by a 10.1% YoY increase in CPO ASP and volume expansion. For 2026, analysts project the EBIT margin for this segment to reach 20.4%, up from 19.6% in 2025, assuming a global CPO price of around RM4,500 per tonne. However, the increase in Indonesia’s palm oil export levy to 12.5% in March 2026 is expected to slightly limit ASP increases.
Bogasari: Stable with Upside Potential from Wheat Prices
Bogasari recorded a 1.8% YoY revenue increase in 2025. For 2026, management projects volume growth of 2–5% with a similar EBIT margin in the 6–8% range. Global wheat prices strengthened to around USD6 per bushel in April 2026 due to expectations of tighter harvests in the US and Australia. Analysts assess that the risk of prolonged wheat price spikes remains limited, given that INDF has wheat stocks for the next 3–4 months.
2025 Financial Performance and Forward Projections
Throughout 2025, INDF recorded revenue of Rp123.5 trillion (up 6.7% YoY) and net profit of Rp10.7 trillion (up 23.6% YoY). Analysts project 2026 revenue at Rp131.8 trillion with net profit of Rp12.5 trillion. 2026 EPS is projected at Rp1,420.1, up 16.7% YoY. Analysts have also revised 2026/2027 EPS downwards by 3%/4% respectively to reflect Q4 2025 financial realisations and changes in ICBP projections.
Valuation: Still Cheap Compared to Sector Average
With the current price at 4.7x 2026 P/E, analysts consider INDF attractive in terms of valuation. The Rp8,200 target price is set based on the Sum-of-the-Parts (SOTP) method with a 40% holding company discount, implying a 5.7x P/E for 2026. Analysts also note that INDF is a cheaper alternative compared to investing directly in ICBP.
Risks to Watch
Analysts mention the main risk as weaker-than-expected performance in the non-CBP segment.
Conclusion:
Based on Ciptadana Sekuritas Asia’s research, INDF receives a Buy recommendation with a target price of Rp8,200 per share, supported by growth in three main segments: CBP, agribusiness, and Bogasari. The current valuation is considered attractive by analysts. However, this article is not an investment recommendation. Every decision to buy or sell shares is entirely the responsibility and personal consideration of the investor.