Wednesday 4 April 2012

Maybank IB downgrades Sarawak Oil Palms to Hold

KUALALUMPUR (April 4): Maybank Investment Bank Bhd Research has downgraded Sarawak Oil Palms (SOP) to a Hold from Buy previously with an unchanged target price of RM7.20 and said SOP’s JV to secure two tankers does not come as a surprise as logistical support is increasingly crucial as SOP grows in size and sells its palm oil regionally.

“This small initial capital outlay of RM7.7 million has broader implications for its longer-term plan to be a sizeable, integrated PLANTATION [] player.

“That said, its share price has risen 60% since we initiated coverage on 2 Aug 2011. We downgrade the stock to Hold given a narrowed 4% upside to our RM7.20 TP (on 13x 2013 PER),” the research house said in a note Wednesday.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.
Related Posts Plugin for WordPress, Blogger...