Similarly, UOB Kay Hian Research analysts Leow Huey Chuen and Jacquelyn Yow have also maintained their “underweight” rating on the plantation sector as they expect earnings to contract by 24% in 2022.
Despite expecting the year’s fundamentals of supply to improve with moderation in crude palm oil (CPO) prices in 2H22, RHB Group Research analyst Hoe Lee Leng says valuations will remain dampened by ESG risks.
She maintains “underweight” on the plantation sector, with a "buy" call for Wilmar International and “neutral” call for the remaining three Singapore-listed stocks covered.
