Bumitama Agri kept at 'buy' with $1.26 target price by DBS

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

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.26

SINGAPORE (June 12): DBS Group Research has kept its 'buy' call on upstream palm oil play Bumitama Agri with a target price of $1.26.

"We peg BAL's TP at $1.26/share, based on DCF valuation. This implies FY16F PE of 14.3x," says analyst Ben Santoso in a report out today.

Santoso says aggressive expansion in FY05-FY13 has kept the age profile of trees at Bumitama younger compared to peers at 5.5 years.

Santoso expects this to deliver 14% CAGR in Fresh Fruit Bunch output over the next three years.

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.

Bumitama Agri kept at 'buy' by DBS with $1.32 target price

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

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.32

SINGAPORE (Feb 5): Bumitama Agri announced that it had entered into facility agreements with several banks, including DBS, UOB and OCBC Bank, among others, for total committed and uncommitted debt facilities of US$265 million.

The loan will fund general corporate and working capital requirements, as well as refinance existing debts.

In a Feb 4 report, analyst Ben Santoso writes that the debt facilities should not have a significant impact on Bumitama Agri's net gearing.

Bumitama Agri's net gearing should settle at 32.5% based on his current forecast.