Golden Agri: OCBC maintains Buy with $0.88 TP. Note that weaker CPO prices factored in and grp has seen its share price coming under some pressure of late, easing some 9.2% from its recent $0.705 high. Add that house have already taken the impact of softening CPO prices into assumptions, given that base CPO price assumption remains at US$950/t for FY11, vs the current price of US$1108…..
Believe that any sharp tumble in CPO prices is unlikely, given the still rising crude oil prices. Short-term market volatility notwithstanding, remain sanguine about the growing demand for CPO based products from rapidly developing countries such as China, India and Indonesia over the medium term.
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