Thursday, February 17, 2011

Indofood Agri

Indofood Agri: Credit Suisse upgrades to Neutral from Underperform, and raises its TP to $3.00 vs $2.12, after increasing its FY11 crude palm oil price assumption to MYR2,950 pt vs MYR2,300/ton. Lifts FY11 earnings estimates by 57% to reflect its higher CPO price assumptions….

Note that IFAR is currently one of the largest upstream plantations in Indonesia, with exposure in North Sumatra, Riau, South Sumatra and Kalimantan. Its plantation portfolio comprises a handful of contiguous estates, allowing the company to enjoy significant economies of scale.

... still palm oil stocks down marginally today, after CPO May futures dropped 3.6% yday to close at RM 3745/ ton. Palm oil's decline to its lowest level since Dec 17 follows losses in soybean and soyoil prices on CBOT, as traders cut risky positions following higher crop estimates for Brazil and rains in Argentina diminished the threat of prolonged tightness in supplies.

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