You are here

Broker's take: CIMB Research maintains 'neutral' rating on plantation sector

PALMOIL060315.jpg
Palm oil companies are good long-term investments, and established well-managed palm oil players will be able to offer strong cashflows and good dividend yields to long-term investors, said CIMB Research on Friday.

PALM oil companies are good long-term investments, and established well-managed palm oil players will be able to offer strong cashflows and good dividend yields to long-term investors, said CIMB Research on Friday.

It has maintained its 'neutral' rating on the plantation sector.

The research house concurred with analyst Dorab Mistry's presentation, adding that listed palm oil players are attempting to move to a more integrated business model (similar to Wilmar).

But it feels that this will take time, as will strong execution capability for planters to develop and achieve.

"We have 'hold' ratings on both of his picks, Wilmar and Sime Darby, as we see limited near-term catalysts and some macro headwinds affecting the businesses in the short term."

sentifi.com

Market voices on:

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Most Read

No contents
Powered by GET.comGetCom