According to analysts in their Jan 23 note, Leow Huey Chuen and Jacquelyn Yow Hui Li say that the allegation of fraud in China will only have a "marginal financial impact" on the company but may raise "concerns on governance".
UOB Kay Hian has kept its "hold" call on Wilmar International (SGX:F34
) but cut its target price from $3.80 to $3.35 after a lower valuation multiple was applied.
The cut was no thanks to short-term negative sentiment anticipated over its recent alleged involvement with a palm oil fraud case in China, which has been denied by Wilmar and its China-listed subsidiary Yihai Kerry Arawana (YKA) on Jan 12.
