KAF upgrades Adaro Andalan Indonesia stock to Buy at IDR 12,200

Published on 10/19/2026 at 11:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

KAF upgraded Adaro Andalan Indonesia stock to Buy at IDR 12,200 on October 19, 2026. First-half net income was USD 474 million, up 10.5 percent.

Capital allocation and earnings

KAF upgraded the rating from Accumulate to Buy and set a target of IDR 12,200 on October 19, 2026.
Net income reached USD 474 million in the first half of 2026, up 10.5 percent year over year.
The Kestrel divestiture delivered USD 734.83 million after tax on October 1, 2026.

Adaro Andalan Indonesia, ID1000207509, Illustration mit AI erstellt.

Adaro Andalan Indonesia (ISIN ID1000207509) received an upgraded Buy rating from KAF Sekuritas with a target of IDR 12,200 on October 19, 2026. The target was cut from IDR 13,200 to reflect a higher risk premium linked to Indonesia's market classification review, according to KAF Sekuritas.

Three events shape the story

On October 1, 2026, Adaro Capital Limited completed the sale of its 47.99 percent stake and warrants in Kestrel Coal Group to Yancoal Australia. The transaction delivered USD 734.83 million after tax from gross consideration of USD 814.12 million, as Bisnis.com reported. On October 5, 2026, UOB Kay Hian set a target of IDR 14,300 and projected 48 percent net-income growth for 2026, according to IDXChannel. KAF's October 19 update is the latest of the three events.

What does the cash realization mean?

The Kestrel proceeds give Adaro Andalan Indonesia additional capital for domestic expansion, dividends and partial debt repayment. The transaction also includes potential contingent cash consideration of up to USD 550 million over five years, subject to coal-price conditions, according to the October 1 disclosure reported by Bisnis.com.

The operating base also showed scale before the asset sale. Adaro Andalan Indonesia posted net income of USD 474 million in the first half of 2026, up 10.5 percent from the same period a year earlier. Second-quarter average selling price rose to about USD 75 per ton while sales volume increased 22 percent from the first quarter, according to APBI.

Capital returns remain central

The investment case now combines a pure Indonesian thermal-coal focus with a large completed cash transaction. UOB Kay Hian's IDR 14,300 target and KAF's IDR 12,200 target show a wide range of analyst assumptions, while both views connect future value to cash allocation and operating execution.

Cash and earnings set the frame

For investors, the decisive variables are the use of the Kestrel proceeds, thermal-coal pricing and the delivery of first-half operating momentum. The company also operates through businesses spanning coal mining, mining services, power generation and logistics.