By Yi Wei Wong

Astra International shares jumped in early Asian trade, helped by sharply higher commodity prices amid the Russia-Ukraine conflict.

The Indonesian conglomerate's shares were recently 8.2% higher at 6,275 rupiah ($0.44) on Tuesday, taking gains over the past three trading sessions to 14%.

High prices of coal and gold are likely to boost earnings for Astra's mining unit United Tractors, while record crude palm oil prices should benefit its plantation subsidiary Astra Agro Lestari, Citi said in a research note late Monday. The units account for about 30% and 8%, respectively, of Astra's earnings, according to Citi.

"Astra is a big-cap laggard especially if we compare with other commodity names," Citi said, adding that there could be significant upside to its earnings forecasts if commodity prices remain high. Citi has a buy rating and IDR8,200 target price on the stock.

Brokerage Bahana Sekuritas said in a recent research note that Astra's 2022 earnings outlook seems bright, driven by Indonesia's improving economy, high commodity prices and growing sales of two key car models. Bahana has a buy rating and IDR6,875 target price on the stock.


Write to Yi Wei Wong at yiwei.wong@wsj.com


(END) Dow Jones Newswires

03-07-22 2357ET