Indofood Agri

Indofood Agri +1.3% to $2.29 after losing streak over last 3 sessions. IndoAgri has underperformed since beg Sep, down 1.7% vs Golden Agri +3.6%, Wilmar +1.9%. UBS has Buy call with $2.81 target, likes IndoAgri for offering the best exposure to CPO price because of its vertical integration in Indonesia & significant reinvestment to build up its supply chain. Also notes high ratio of immature to mature area, high proportion of trees in yield improving 4-6 years age band gives Indofood one of strongest growth prodn profiles in sector. Expects CPO prices to be range-bound in Sep-Nov due to bumper soybean harvest but bullish on CPO price over next 3-4 years due to structural supply problems in M’sia (running out of land for oil palm expansion) & Indonesia (slower rate of land expansion). Immediate resistance at 20 & 50-day MAs at $2.32; support at $2.22. Golden Agri +1.7% at S$0.59, Wilmar off 0.6% at $6.34.