GoldenAgri: OCBC maintains at Buy and keep $0.91 TP due to persistently bullish CPO price outlook. House note that grp's lower production volumes will be offset by higher CPO prices and on the demand side, believe that consumption of palm oil will continue to be fuelled by the growing affluence of India and China, the world''s top two importing nations….
While house currently expects CPO price to edge above US$950/ton in early 2011 before dropping off after mid-2011, add that given the confluence of negative factors driving up food prices in general, which could keep food prices elevated for an extended period, it may be necessary to revise up the base assumption in the near future.
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