Tuesday, August 18, 2015

First Resources

First Resources: Deutsche reiterates its Buy rating (TP: $2.85) on First Resources, citing that a positive catalyst could emerge in 4Q15, underpinned by Indonesia's biodiesel implementation.

House believes the programme will be successful, supported by the recent export levy imposed by the government in a bid to fund 44% of Indonesia's diesel market in 2016. Slated to begin in Sep/Oct 2015, this could lift CPO price by 25%.

Relatively, First Resources has strong output growth, built-in revenue options and cost discipline, which would enable the company to defend any CPO price weakness better than peers.

No comments:

Post a Comment