Jakarta - Sucor Sekuritas has recommended the shares of PT Barito Pacific Tbk (BRPT) as a High Alpha Stock, namely a stock with returns that significantly exceed the market average.

BRPT shares could be an attractive option for investors, supported by a combination of strong fundamental factors and significant momentum drivers.

“Historically, BRPT has emerged as the primary beneficiary of this situation. This time, we believe BRPT will likely re-emerge as a high- alpha stock, driven by four strong fundamental factors and two powerful momentum catalysts,” Arief Putra, an analyst from Sucor Sekuritas, said.

In terms of historical performance, BRPT has shown a price increase of over 600 percent since 2000, outperforming many of its peers, which have only recorded gains of around 500 percent during the last seven market rallies. However, in the most recent market rally, BRPT's share price only rose by 2 percent, trailing 12 percent behind its competitors. This indicates an untapped growth potential and presents an opportunity for investors to enter.

The strong fundamental factors mentioned by Arief include BRPT's position through its subsidiary, PT Chandra Asri Pacific Tbk (TPIA), in which BRPT holds a 35 percent stake.

TPIA is on the verge of two major developments. The first is TPIA's acquisition of an 80 percent stake in Shell, which is expected to increase TPIA's revenue by up to six times, driving a favorable recovery.

The second is the recent spin-off of Chandra Daya Investasi (CDI), TPIA's infrastructure subsidiary in which it holds an 80 percent stake. This spin-off is believed to unlock value and enhance the valuations of both TPIA and BRPT.

Two other significant subsidiaries are the fully operational 2,000 MW power plant, in which BRPT holds a 34 percent stake, projected to generate up to $51 million in associated income per year by 2025, and the property subsidiary Griya Idola.

Griya Idola is collaborating to sell 400 hectares of industrial and residential land at Patimban and Cikupa, with annual revenues expected to reach $5 million starting in 2025.

In addition to fundamental factors, BRPT is also supported by two significant momentum catalysts.

The first is the inclusion of one of BRPT's subsidiaries, PT Barito Renewables Energy Tbk (BREN), in the FTSE Global Equity Index. This is expected to increase demand for BREN shares and drive up its stock price.

Secondly, if this upward trend continues, investors can anticipate BREN’s entry into the MSCI Index, which will further boost demand for the stock.

“BRPT serves as a proxy for TPIA and BREN, with better value propositions and diversified business risks. BRPT has proven to be an exceptional outperformer in the bull market. Hence, our TP of Rp.3.500 is attainable given the long term bull market,” Andreas Yordan Tarigan, an analyst from Sucor Sekuritas, said.

With positive financial projections, strong business diversification, and attractive valuation, BRPT shares are worth considering as part of a long-term investment portfolio.