Golden Agri

Golden Agri: OCBC upgrades the counter to Hold from Sell, noting that despite a disappointing set of 3Q13 results, Golden Agri-Resources’ (GAR) share price rose to a high of $0.61 on 18 Nov, likely buoyed by more signs that CPO (crude palm oil) prices are stabilizing around current levels (MYR2500/ton). However, believe that the run-up in share price looked overdone. And true enough, GAR’s share price has since corrected over 14% from that high. Nevertheless, with recent correction in share price, note that GAR is just 5% above its unchanged fair value of $0.50 (based on 13.5x FY14F EPS).