Stock Name: GoldenAgr
Company Name: GOLDEN AGRI-RESOURCES LTD
BNP Paribas said it is positive on the oil palm sector as oilseed supply in the 2011-2012 planting season is expected to be tight due to weather damage to corn, soybeans and rapeseed in China, the United States and the European Union.
Company Name: GOLDEN AGRI-RESOURCES LTD
| Research House: BNP Paribas | Price Call: BUY | Target Price: 1.03 |
BNP Paribas has initiated coverage of Singapore palm oil producer Golden Agri-Resources (GAGR.SI) with a buy rating and a target price of $1.03.
Golden Agri has an average daily traded value in the last three months of US$42 million, placing it among the most liquid plantation plays in Asia, BNP Paribas said, adding that the stock is highly leveraged to crude palm oil prices.
Golden Agri has an average daily traded value in the last three months of US$42 million, placing it among the most liquid plantation plays in Asia, BNP Paribas said, adding that the stock is highly leveraged to crude palm oil prices.
BNP Paribas said it is positive on the oil palm sector as oilseed supply in the 2011-2012 planting season is expected to be tight due to weather damage to corn, soybeans and rapeseed in China, the United States and the European Union.
It added that 20% of Golden Agri’s trees are likely to mature in three years and drive production. BNP Paribas added that the firm has embraced sustainability, such as by engaging Greenpeace openly.
Golden Agri told Reuters earlier this month that its output of crude palm oil could rise by more than 10% this year if weather conditions remain favourable, exceeding the firm’s earlier production forecasts.
At 10:10a.m., Golden Agri shares were flat at $0.675 on a volume of 10.6 million shares.
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