First Resources price target cut 14.3% to $2.40 by UOB Kay Hian

Stock Name: First Resources
Company Name: FIRST RESOURCES LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 2.40

SINGAPORE (May 12): UOB Kay Hian has cut its price target for First Resources to $2.40 from $2.80 after reducing its earnings estimates for 2015 to 2017 by 18% to 25% to account for lower crude palm oil prices.

The revised target is based on 15 times projected 2016 earnings.

The palm oil producer said on Monday its 1Q2015 earnings fell 38.5% y-o-y to US$27.7 million ($36.8 million) on weaker palm prices and sales volumes.