Golden Agri: CLSA rates Buy, TP$0.85 due to growth and expected FY11 CPO price at RM3,400/ton. Cites leverage to CPO prices with every 10% increase will raise earnings by 27%, making GGR one of the most leveraged plays to CPO prices. 30k ha of annual new plantings and a strong downstream franchise will ensure medium to long term growth.
Co has attractive valuations, trading on 11.5x fwd P/E, a 20% discount to the sector and 25% disc to Msian peers.
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