First Resources: StanChart initiates at Outperform with $1.70 target, pegged to 12x FY11E P/E, lower than the 15x sector avg to compensate for its size, liquidity and profile. Likes FR as a relatively pure plantation earnings play with high sensitivity to CPO price, with 30% earnings chg for every US$100/mt chg in CPO price. Notes FR’s high yields relative to peers despite its young age profile indicates good execution, supportive of future pdtn growth...
Believes co is on track to achieve target of 600k tons of CPO pdtn by 2013, 200k of planted palms by 2015.
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