First Resources

First Resources: Citi upgrade to Buy from Neutral, TP $2.30 from $1.98, Favourable Growth Prospects in 2013. Adjust earnings primarily to factor in higher volume growth and a weaker rupiah. FY201314 earnings are higher by 7-8% . At 10.8x 2013E PE, FR’s valuation is at a premium relative to key Indo CPO peers, but given favourable growth prospects (+17% 2-yr NP CAGR) and perceived improving corp. governance, view the premium as justified. It is also still lower than its historical PE average of 12.4x.