Maybank Kim Eng ups target on First Resources

Stock Name: FirstRes
Company Name: FIRST RESOURCES LIMITED

Research House: Kim Eng

Price Call: BUY

Target Price: 2.15

Maybank Kim Eng raised its price target on palm oil producer First Resources to $2.15 from its buy rating.

First Resources shares were up 1.3% at $1.915, having gained 27% so far this year.

Kim Eng raised its 2012-2014 net profit forecasts by 10-15% mainly to reflect its higher crude palm oil average selling price assumptions.

The deterioration of South American crop prospects over the last month has further tightened global supplies of soybeans, the broker said. Further upside could come from higher-than-expected fresh fruit bunches output for 2012, it said.

Kim Eng said First Resources is also on track to complete its refining and fractionation capacity expansion to 850,000 tonnes per year by the first quarter of 2013.