Monday, March 7, 2011

JPMorgan ups Wilmar to neutral, target $5.40

Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED
Research House: JP Morgan Chase

JPMorgan has upgraded Wilmar International (WLIL.SI), the world’s largest listed palm oil firm, to neutral from underweight and raised its target price to $5.40 from $4.60.

JPMorgan said it expects Wilmar to benefit from better South American soybean production prospects due to lower feedstock costs and stronger palm and laurics volume and margin.

The brokerage also expects crude palm oil prices to trade lower as production picks up, it said in a report.
“We upgrade Wilmar to neutral as we believe the fourth quarter should have been the trough,” JP Morgan said in a report.
However, it still remains cautious on Wilmar’s outlook due to high inflationary pressures in China.
At 09:35 a.m., shares of Wilmar were 0.39% higher at S$5.21, but have fallen 7.5% since the start of the year.

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