IndoAgri - Indofood Agri downgraded to Neutral by Credit Suisse

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

Credit Suisse cuts Indofood Agri Resources (5JS.SG) to Neutral from Outperform, reduces target price to $2.65 from $2.69 on expected fall in crude palm oil prices in 2011 despite spurt in 2010, says Dow Jones.

“Given IFAR’s higher beta, it has the potential to benefit from short-term stronger CPO outlook. However, given our expectation for weaker CPO price outlook in 2011, we see the potential for IFAR’s share price to suffer from soft sentiment in the medium term,” Credits Suisse says in note.



Adds, current heavy rainfall may curb 2010 CPO output on potential disruptions, increase 2011 yield. Stock last +4.2% at $2.50.