Company Name: GOLDEN AGRI-RESOURCES LTD
Research House: Phillip Securities
Phillip Securities has upgraded its rating for Singapore-listed palm oil firm Golden Agri-Resources (GAGR.SI) to buy from hold and raised its target price to $0.83 from $0.74.
Phillip upgraded Golden Agri after the firm reported a better-than-expected 134% increase in its first quarter revenue to US$1.4 billion ($1.75 billion), due to better performance from its China operations and higher average selling prices.
The brokerage also noted that Golden Agri is expanding its downstream business, which will benefit from the growing affluence of emerging markets and rising popularity of edible oils.
"We see the importance of Golden Agri’s need to improve their downstream business because diversification of their source of revenue will help them reduce their business risk," said Phillip in a report.
Shares of Golden Agri have fallen 13.8% since the start of the year to end at $0.69 on Monday.
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