Indofood Agri

Indofood Agri: +1.9% at $2.65. Share price fully recovered from Friday’s 5% intra-day selloff, following a weak set of 3Q10 results. The majority of Street recommends to look past the 3Q disappointment, expects 4Q to come in better as sector moves into peak pdtn period in Oct, and ASPs for CPO, cooking oil rise. Notably, competitors have initiated 5-6% increase for cooking oil prices pdts over the last 2 wks, but IFAR has yet to follow suit…

IDAR remains Deutsche’s top pick. Buys maintained at Deutsche (TP $3.50), Nomura (TP $3.20), CIMB (TP $2.96 ).
Credit Suisse however downgrades to UnderPerform, cuts target to $2.12 from $2.60, on lower earnings outlook. Says upside risk may be limited, as Indonesia’s progressive export tax system reduces sensitivity of CPO producers’ earnings when CPO prices are above the RM3000/ton level.