IndoAgri - Indofood Agri cut to $2.81 vs $3.06 by UBS

Stock Name: IndoAgri
Company Name: INDOFOOD AGRI RESOURCES LTD.
Research House: UBS

UBS cuts Indofood Agri Resources (5JS.SG) target price to $2.81 from $3.06 after reducing FY10-FY11 EPS estimates by 20%-15% to assume lower yields, says Dow Jones.



UBS notes, heavy rainfall disrupted harvesting activity, resulting in weaker yields, results for 2Q10. But keeps Buy call on view plantation group offers best exposure to volume-drive growth in sector as it has large chunk of planted area yet to mature.



Research house adds, new sugar business will start contributing to group earnings soon: “We think Indofood Agri could start to reap the rewards of its investment in 4Q10 as it would by then have completed an 8,000 tonne per day sugar refinery at the estate.”



Shares +0.4% at $2.33.