“We believe the market has yet to price in the potential rerating catalyst of higher yields which can keep their cost per hectare low and provide another earnings growth driver beyond a CPO price recovery,” he adds.
SINGAPORE (Dec 18): DBS Research has an “overweight” rating on the Singapore plantation sector with Bumitama Agri, First Resources (FR) and Wilmar as its top “buy” picks.
“Amid the lack of significant catalysts for crude palm oil (CPO) prices to rally to above our base case forecast next year, we still prefer companies with strong organic CPO volume growth prospects that can help boost profitability,” says lead analyst William Simadiputra in a market focus report.
