Golden Agri (GGR): says it has been accepted as a member of the Roundtable on Sustainable Palm Oil (RSPO). GGR and its Indon-listed subsidiary, SMART, had previously been accused by green groups such as Greenpeace of engaging in illegal forest clearing, which led to SMART losing clients such as major palm oil consumers Unilever, Nestle and Burger King...
News is positive and should remove previous share overhang, as this shows GGR successfully moving in the right direction to rebuild its reputation. Further share price catalyst possible if this paves the way for lost clients to return to transact with GGR.
Street calls mostly at Buy/Hold with recent TP ranging btwn $0.73-0.88.
Stock trades at 13.2x consensus fwd P/E, vs IndoAgri’s 12.2x and First Resources’ 11.2x.
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