Sime target price lowered
Business Times
Wednesday, August 27, 2008
Credit Suisse has maintained its ‘outperform’ call on the Malaysian planter while Hwang-DBS has kept its ‘buy’ rating on the stock
CREDIT Suisse has lowered its target price on Malaysian palm oil firm Sime Darby to RM10.10 from RM12.50 after reducing its earnings estimates for fiscal 2009 and 2010 by 1 per cent and 4 per cent, the research house said on Wednesday.
Credit Suisse has maintained its “outperform” call on the Malaysian planter.
It said the lower target price took into account the de-rating of the Malaysian stock market and the plantation sector.
Sime shares rose 2.3 per cent to RM6.60 by 9.23 am today.
Meanwhile, Hwang-DBS Vickers Research has cut its target price on Sime Darby to RM7.65 from RM8.85 due to a weak industry outlook, the research house said today.
“Given that plantation stocks are still in a downcycle, Sime’s valuation could fall to 8.5 times in the near term, before rebounding in the next cycle,” the research house said.
Hwang-DBS has kept its “buy” rating on Sime. - Reuters
