UNTR's 14% outperformance versus the JCI over the last quarter has been
boosted, in our view, by its limited exposure to policy risk and inflation
pressures relative to other blue chips. While growth prospects and
favourable currency leverage still dispose us positively, tighter valuations
now mean that UNTR probably needs to deliver Komatsu sales matching
guidance (9,000-9,500 units) rather than our more conservative 8,000 unit
estimate to open up fresh absolute upside. Maintain OW, Rp 32,500 PT.
