Golden Agri

Golden Agri: OCBC note that GAR’s share price fell by as much as 4.5%, bringing its YTD decline to 13.1%. Despite the sharp pullback in CPO prices, believe that GAR should still be able to achieve our US$925/ton target; hence keeping our FY12 forecasts unchanged. But we are cutting our CPO target for 2013 to US$750/ton, which in turn pares our revenue and earnings forecasts by 6.7%. While house maintaining 12.5x blended FY12/13F EPS peg, fair value eases from S$0.81 to S$0.76. But maintain BUY rating as believe that co’s longer-term fundamentals remain sound.