Bumitama Agri price target cut 6% to $1.30 by Maybank Kim Eng

Stock Name: Bumitama Agri
Company Name: BUMITAMA AGRI LTD.

Research House: Maybank Kim Eng

Price Call: BUY

Target Price: 1.30

SINGAPORE (Feb 25): Maybank Kim Eng has cut its price target for Bumitama Agri from $1.38 to $1.30, based on 13 times projected FY2016 earnings, after lowering its earnings per share estimates by 6.6% for FY2015 and 6.4% for the following year.

The revisions factor in expected higher costs as some 10% of the crude palm oil producer's plantings mature this year.

The broker has kept its "buy" call on the stock, saying its growth prospects remain intact.