Golden Agri

Golden Agri: Nomura says depressed valuations near Sep ’11 levels, make the stock doubly attractive, tipping "substantial value" with the stock trading at 8.5X 2013 P/E, vs its 10.9X historical mean. Says current px offer an entry-level that is attractive for both a long and short-term investment horizon. The stock is driven primarily by two factors, the CPO price, which Nomura expects to resume its uptrend, and earnings, with GAR's geographical diversification possibly key to earnings outperformance. Nomura notes GAR's 1Q12 production growth was among the least disappointing, while its Indonesian and Liberian landbank is sufficient to sustain upstream expansion for the next decade. Adds, recent efforts to communicate its environmental and social sustainability commitment can positively impact shares by increasing the investor pool. GAR remains its top plantation-segment pick. The house raises TP to $0.95 from $0.94 on rolling forecasts forward, keeping a Buy call. The stock is +2.3% at $0.655