Deutsche puts “sell” on Golden Agri; S$0.16 target
Thu Oct 16, 2008 7:52pm EDT
SINGAPORE, Oct 17 (Reuters) – Deutsche Bank on Friday initiated coverage of Singapore-listed Indonesian oil palm plantation firm Golden Agri (GAGR.SI: Quote, Profile, Research, Stock Buzz) with a “sell” recommendation and a target price of 16 Singapore cents.
“We have a cautious near-term outlook for CPO (crude palm oil) prices given excess inventories and supply coming on stream. With CPO prices falling and costs remaining high, we expect the street to cut earnings,” Deutsche analyst Pyari Madhava Menon wrote in a report.
“The company has been aggressive in reporting revaluation gains, which could reverse if CPO prices fall below US$575/ton,” the analyst added. The stock last traded at 20.5 Singapore cents. (Reporting by Kevin Lim; Editing by Kim Coghill)