Danareksa Sekuritas lowered its target price on shares of PT Multistrada Arah Sarana Tbk to 380 rupiah from 400, citing higher expenses due to the tyre maker's offer price discounts and aggressive advertising and promotions (A&P).
Multistrada, which suffered from the collapse of the European market in 2012, plans to shift its focus away from troubled Europe to more promising areas like Africa, Australia and some Asia countries, analyst Joko Sogie said in a note.
"At the same time, MASA has also been very aggressive in its A&P spending, trying to create greater brand awareness, especially in the domestic market," Sogie said.
The research house kept its "hold" rating on Multistrada, saying the company's long-term prospects are brighter, although a recovery in export markets may still take longer
Multistrada shares fell 2.74 percent to 355 rupiah, while the broader index declined 1.39 percent.
1401 (0701 GMT) (Reporting by Andjarsari Paramaditha; Editing by Anand Basu)