8 August 2008
NEUTRAL Maintained
S$0.58 Target: S$0.65
Mkt.Cap: S$5,587m/US$4,040m
Dry spell..........................oil price of US$120 per barrel.
foreword(序言) is repeated please click here if you want to read
Valuation and recommendation
Maintain Neutral but downgraded target price to S$0.65 from S$0.94. There are no changes to our FY08-10 net profit forecasts as our CPO price forecasts are intact. However, we have cut our P/E rating for Golden Agri to 9.5x from 14x to factor in our perceived downside risks for CPO prices. Our new P/E target is aligned with its historical 3-year average 12-month forward P/E. Accordingly, our target price drops from S$0.94 to S$0.65. Our Neutral rating has been maintained as the stock’s potential return continues to be in line with the market’s.
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