Stock Name: IndoAgri
Company Name: INDOFOOD AGRI RESOURCES LTD.
However, DMG noted that Indofood is committed to spending $230 million to acquire new palm oil businesses outside Indonesia, which could be a catalyst for the stock to re-rate.
Company Name: INDOFOOD AGRI RESOURCES LTD.
| Research House: DMG | Price Call: BUY | Target Price: 2.41 |
DMG & Partners has cut its target price for Singapore-listed palm oil firm Indofood Agri Resources (IFAR.SI) to $2.41 from $2.79 but kept its buy rating.
DMG & Partners has cut its 2011 earnings forecast for Indofood by 13.8%, due to the dilution of its stake in 72% owned subsidiary PT Salim Ivomas Pratama (PT SIMP) after its listing in Indonesia.
DMG & Partners has cut its 2011 earnings forecast for Indofood by 13.8%, due to the dilution of its stake in 72% owned subsidiary PT Salim Ivomas Pratama (PT SIMP) after its listing in Indonesia.
However, DMG noted that Indofood is committed to spending $230 million to acquire new palm oil businesses outside Indonesia, which could be a catalyst for the stock to re-rate.
Indofood’s valuations also look attractive as it is trading at 10 times its 2011 earnings per share, compared to around mid-teens levels for its peers.
At 9:34 a.m., shares of Indofood were 0.63% higher at $1.16. They have lost 42.5% since the start of the year.
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