KUALA LUMPUR (Nov 11): MIDF Research has retained its Neutral recommendation on the PLANTATION [] sector and said that despite the stable demand outlook for CPO, weak economic sentiment was hurting prospect for expansion.
In a note Nov 11, the research house reiterated its RM3,200pmt average CPO price forecast for 2011.
“We are maintaining our BUY recommendations on Sime Darby (Target price RM9.05) because of its increase in mature areas would provide higher CPO output, TSH Resources (Target price RM3.54) as we expect TSH to register higher output growth mainly contributed from its Indonesian estates and TH Plantation (Target price RM2.26) due to its defensive play,” it said.
In a note Nov 11, the research house reiterated its RM3,200pmt average CPO price forecast for 2011.
“We are maintaining our BUY recommendations on Sime Darby (Target price RM9.05) because of its increase in mature areas would provide higher CPO output, TSH Resources (Target price RM3.54) as we expect TSH to register higher output growth mainly contributed from its Indonesian estates and TH Plantation (Target price RM2.26) due to its defensive play,” it said.
