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Singapore Stocks - Golden Agri-Resources Ltd - Revised Price Target S$0.76
OCBC Investment Research cut its target price for palm oil company Golden Agri-Resources Ltd to S$0.76 from S$0.81 and kept its 'buy' rating, citing a larger-than-expected drop in crude palm oil prices.
By 0228 GMT, Golden Agri shares were down 0.8 percent to S$0.63, and have dropped 11.9 percent since the start of the year, compared with the Straits Times Index's 16.2 percent rise.
OCBC has cut its revenue and earnings forecasts for 2013 by 6.7 percent each for Golden Agri, as it lowers its crude palm oil price assumption to $750/tonne from $950/tonne previously.
"Crude palm oil prices have been falling a lot faster than what the market had expected, hit by weaker-than-expected demand from China, leading to rising stockpiles in both Malaysia and Indonesia," OCBC said in a report.
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