Nomura is sticking with its “reduce” rating on Golden Agri-Resources despite the palm-oil producer delivering better-than-expected fourth quarter results.
Nomura says although core earnings were above its view, they are coming under margin pressure. It is cutting its earnings estimates on Golden Agri over the next two years, citing higher operating expenses and the El Nino weather phenomenon that will hurt palm output.
But the investment bank says it may revisit its rating if prices for crude palm oil rise more than expected or the company improves its downstream business.
Golden Agri last traded at 37 cents.
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Nomura says although core earnings were above its view, they are coming under margin pressure. It is cutting its earnings estimates on Golden Agri over the next two years, citing higher operating expenses and the El Nino weather phenomenon that will hurt palm output.
But the investment bank says it may revisit its rating if prices for crude palm oil rise more than expected or the company improves its downstream business.
Golden Agri last traded at 37 cents.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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