Indonesia’s GoTo jumps 24% since May after relentless selloff

Bloomberg

GoTo Group jumped by the most since May as some brokers upgraded the battered stock following weeks of sharp selloff.
The Indonesian ride-hailing and e-commerce provider surged 15% to 100 rupiah, snapping 16 straight sessions of losses. Trading volume also soared to about 30 times its three-month average.
Even with the latest gain, the stock has plunged more than 70% since its April debut, which has prompted the Indonesia stock exchange to put GoTo in its watchlist for any unusual trading activity.
The bourse can suspend trading in the stock if it detects anything suspicious. Shares touched as low as 81 earlier in the day,
approaching the 50 rupiah-threshold set by the exchange that would reject any bid or offer below that level.
A number of analysts are turning more positive on the stock as valuations become more attractive.
UBS AG and BNI securities upgraded their rating this week to buy from sell. That comes after Aletheia Capital said that GoTo is about six quarters away from a cash crunch and recommended investors sell the stock.
GoTo is still trading at higher valuations compared to regional peers, but its “premium vs peers has narrowed, making valuations attractive,” UBS analysts including Navin Killa wrote in a note. “Steady progress towards profitability in should help the stock re-rate.”
Like many technology companies worldwide, GoTo is confronting the effects of stiffer competition, economic slowdown and heightened investor focus on the bottom line. Selloff gathered pace following an expiry of a lockup on its major shareholders’ stakes that freed them to reduce their holdings. It’s the worst performer among 11 tech and internet companies that raised more than $500 million in inaugural share sales this year.
Efforts by the company’s executives to assuage investors that it has enough funds to last until reaching profitability have failed to turn around the bearish sentiment.