Golden Agri-Resources

Golden Agri-Resources: Morgan Stanley maintains its UNDERWEIGHT rating on counter, as impairment charges of ~$0.10/sh is expected, mostly from fair-value adjustments on its biological assets, but also potentially from its underperforming China business and LT Investment portfolio hurting investor confidence. With an average age of ~14 years for its palm estate, they are near past-prime, and together with potential new regulations limiting new planting in Indonesia, Golden Agri may have limited growth. House maintains its TP of $0.39.