Stock Name: GoldenAgr
Company Name: GOLDEN AGRI-RESOURCES LTD
Research House: OCBC
The house says Golden Agri’s lower production volumes will be offset by higher CPO prices. “On the demand side, we believe that consumption of palm oil will continue to be fuelled by the growing affluence of India and China, the world’s top two importing nations.”
Company Name: GOLDEN AGRI-RESOURCES LTD
Research House: OCBC
OCBC Investment Research maintains Golden Agri-Resources (E5H.SG) at Buy and keeps a $0.91 fair value estimate due to persistently bullish CPO price outlook; the stock is +0.7% at $0.725.
The house says Golden Agri’s lower production volumes will be offset by higher CPO prices. “On the demand side, we believe that consumption of palm oil will continue to be fuelled by the growing affluence of India and China, the world’s top two importing nations.”
While the house currently expects CPO price to edge above US$950/ton in early 2011 before dropping off after mid-2011; it adds, “given the confluence of negative factors driving up food prices in general, which could keep food prices elevated for an extended period” it may be necessary to revise up the base assumption in the near future.
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