Indofood Agri: Goldman Sachs upgrades to Buy from Neutral as the negatives are already priced in with the stock down 53% ytd, off 23% since its PT SIMP spin-off. "Investors seem to have reacted negatively to the SIMP spin-off. However, we believe that these negatives are already included in the price given the current 21% holdco discount; meanwhile, its P/E multiples are the lowest in the sector."
Goldman notes IndoAgri's 2010-12E volume growth CAGR of 13.6% is the highest among plantations stocks under its coverage (7% average), owing to yield recovery and a young plantations profile. Also sees strong long-term volume growth potential, given its large immature and unplanted land-bank. At 2.3X its planted area, IndoAgri's land-bank is the highest in the sector. The house lowers TP to $1.85 from $1.95, based on 15% holdco discount, noting JC&C, Astra Intl’s holdco, average discount to NAV is 13%.
Stock +2.3% at $1.325.
No comments:
Post a Comment