Indofood Agri: UBS downgrades to Sell from neutral, lowers TP to $1.55 from $2.20, and says among Indonesian plantation companies, Indofood is its least preferred stock. Notes, although Indofood Agri's share price has fallen 43% YTD (because of the listing of its 72%-owned subsidiary, PT SIMP), believes it will be difficult for its share price to recover and outperform the sector because of its new corporate structure…
Adds, investors may prefer to gain direct exposure to IndoAgri's plantation business through PT SIMP. Notes Indofood Agri plans to invest its $230m cash into a new business outside of Indonesia; but given the value destruction resulting from mgt's decision to list PT SIMP, house will only assess the merits of the potential new acquisition when there is more clarity. Shares +0.6% to $1.60
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