GoldenAgri

GoldenAgri: Goldman Sachs downgrades to Neutral from Buy and removes Stock off house APAC Buy-list. Maintain TP at $0.83. House see more relative value elsewhere in ASEAN Commodities sector coverage (e.g., in Coal and Commodity Traders). Since added GGR to Buy List on June11, the stock is up +9.0% versus STI up +0.5% and plantation peers down 0.6%. House remain positive on the outlook for CPO (crude palm oil) prices on the back of tight soybean supplies, structurally slowing production (lack of new plantings in Indonesia) and attractive price relative to soybean oil (21% price discount, vs 16% in 1Q12). However, believe that this is mostly factored into the stock price – over the last 3 months, GGR has out-performed CPO prices by 18%