Bumitama Agri
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Plantation - Exit on rebound. Top pick: Bumitama
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DBSV Research has cut CY12F/13F/14F CPO prices by 8% to 9% to RM3,020/2,940/2830 on higher inventories. But recent drop in CPO prices is excessive. We believe CPO should fundamentally revert to RM2,800 in 4Q12. Plantation stocks have stayed relatively more resilient, but at 14.1x forward PE, the sector is now close to fair value. We recommend to exit when CPO and plantation counters recover. For SGX-listed stocks, sell-on-strength First Resources (HOLD, TP: S$2.03). Our top buy pick remains Bumitama Agri(BUY, TP: S$1.25). Source: DBS Vicker
Read more:
http://sgx.i3investor.com/blogs/towardsfinancialfreedom/3818.jsp
