DMG & Partners upgraded its call on Golden Agri-Resources to "buy" from "neutral" on Monday, citing the palm oil producer's improved 2014 earnings.
"Golden Agri's earnings appear to have turned the corner, with its oilseed segment booking two straight quarters of improvement," DMG wrote in a note.
The research firm has a price target of 53 Singapore cents on the stock, which rose 3.75 per cent, or 1.5 Singapore cents, to trade at 41.5 Singapore cents early on Tuesday.
DMG noted that the oilseeds segment turned profitable in the fourth quarter of 2014, representing a second straight quarter of improvement.
"There is still uncertainty on its future direction, but the worst is likely over, with likely sustainable profitability," DMG wrote.
Fresh fruit bunches production was however below DMG's forecast by 3 per cent.
"Management is wary of the year's production prospects due to the lag effect of two episodes of dry weather from 2014," DMG wrote. "Growth will likely be at the low end of its 5 to 10 per cent range."