This Stock Has Risen 23% in a Month; Analysts Recommend Buying Amid Projected Performance Growth
Jakarta — The share price of PT Erajaya Swasembada Tbk (ERAA) has risen sharply over the past month despite market volatility. Despite the significant recent gains, analysts continue to recommend the purchase of ERAA shares.
The retail and electronic device distribution company, which focuses on telecommunications-related products, is predicted to maintain strong performance through the end of 2026. This serves as a positive sentiment that could drive further upward movement in ERAA’s share price.
On Monday, 7 September 2026, ERAA’s share price stood at Rp 575, down 15 points or 2.54% daily. However, over the last month, the share price has accumulated a total gain of 23.92%. During the same period, the Jakarta Composite Index (IHSG) rose by only 3.28% to Rp 6,619.67.
Erajaya’s performance is projected to remain solid amidst various industry challenges, driven by the trend of smartphone premiumisation and the strengthening of its business portfolio outside the handset segment. Jonathan Guyadi, an analyst at Samuel Sekuritas Indonesia, estimates that ERAA’s sales in the third quarter of 2026 could grow by 4.8% year-on-year. Meanwhile, a more significant surge is projected in net profit, which is expected to soar by up to 53% year-on-year, primarily supported by the ‘up-trading’ trend, where consumers shift towards smartphones with a higher average selling price (ASP).
“Most brands have launched new premium models to pass on the global increase in chipset costs to consumers,” Jonathan explained in a research report released on 17 July 2026.
ERAA’s operational performance is also reflected in the company’s Same-Store Sales Growth (SSSG) for the first five months of 2026, which was recorded at 7.2%. Domestic consumer demand for high-end flagship devices, such as the iPhone 17 Pro Max line, remains very strong.
Beyond the handset line, ERAA’s growth is also supported by the expansion of its active lifestyle business through its subsidiary, PT Sinar Eka Selaras Tbk (ERAL). During the first five months of 2026, ERAL recorded an impressive SSSG of 10.8%, supported by positive contributions from various active lifestyle product lines.
Opportunities Amid Global Volume Pressure
Although global smartphone shipments in 2026 are projected to undergo a correction of 13.9%—based on IDC data—the global blended ASP is predicted to increase by approximately US$100 to US$550. The high-end segment, with prices above US$600, is expected to grow by 30% year-on-year, contributing 8.3% of total shipments, while the segment below US$150 is expected to contract by 19%.
ERAA is optimally positioned to capitalise on this condition due to its strong market position in premium products. To anticipate the risk of Rupiah exchange rate fluctuations, the company’s management has prepared an early inventory buffer strategy and strengthened promotional support to keep sales volumes stable.
Attractive Valuation and Share Buyback Corporate Action
In the long term, ERAA continues to focus on expanding the revenue contribution from its active and lifestyle business lines to reach a range of 25–30% of total revenue to boost Return on Equity (ROE). Samuel Sekuritas maintains a BUY recommendation for ERAA shares with a target price of Rp 500 per share, reflecting a potential increase of approximately 35.9% from the research reference price of Rp 368. Within its sector, ERAA is considered to have an attractive valuation, trading at a 2026F P/S of 0.1x and a projected 2026 P/E of 3.5x, while offering an attractive projected dividend yield of 7.2%.
As a demonstration of its commitment to shareholders, ERAA is also conducting a corporate action in the form of a share buyback with a maximum fund allocation of Rp 500 billion. This action is scheduled to take place over three months, from 4 September to 4 December 2026, targeting up to 797.5 million shares, or the equivalent of 5% of the total paid-up capital.