Golden Agri reported a 269% y-o-y improvement in EBITDA to US$828 million in 9M21, driven mainly by higher net crude palm oil (CPO) prices and production. The strong fresh fruit bunches (FFB) output was driven by the acquisition of 34 hectares of new estates as well as improved yields from its estates that were hit by drought last year, CGS-CIMB analysts Ivy Ng Lee Fang and Nagulan Ravi note.
Analysts at CGS-CIMB Research and RHB Group Research have increased their target price for Golden Agri-Resources on the back of above-expectations earnings to 28.1 cents and 28 cents respectively, from 25 cents and 24 cents previously.
Analysts at UOB Kay Hian, however, have ceased their coverage on Golden Agri, with a last target price of 18 cents.
