JAKARTA – JP Morgan has upgraded the stock ratings of PT Bank Mandiri (Persero) Tbk (BMRI), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), and PT Bank Negara Indonesia (Persero) Tbk (BBNI).

Harsh Wardhan Modi, Analyst at JP Morgan, stated that BMRI's rating has been raised from Underweight (UW) to Neutral (N). Meanwhile, the ratings for BBRI and BBNI have been upgraded from Neutral (N) to Overweight (OW).

JP Morgan noted that shares of state-owned banks have declined by 17% since the beginning of the year, a drop deeper than the 13% fall in the IHSG.

Fundamentally, Modi said these stocks still face challenges, but their prices are currently below target, creating an opportunity for a technical rebound in the near future.

Following the rating upgrade, JP Morgan set a target price for BMRI shares at IDR 5,100 per share, according to Bloomberg data. Meanwhile, the target price for BBRI shares is IDR 4,200 per share.

As of 11.59 AM WIB today, BMRI shares rose 6.09% to IDR 4,880 per share. Meanwhile, BBRI shares gained 8.04% to IDR 3,630 per share, and BBNI increased 5.71% to IDR 4,260 per share. (KR/ZH)