Broker's Take: CIMB keeps 'hold' call on Golden Agri-Resources, 'overweight' call on Reits
CIMB Research has kept its "hold" call on Golden Agri-Resources as "the stock is fairly valued at the current level".
It said there was keen investor interest in the world's second largest palm oil plantation company recently.
Golden Agri-Resources has said that the oilseeds loss is likely to be one-off as it is taking action to improve the unit's performance.
CIMB said it is keeping its earnings forecasts, target price of S$0.50 and "hold" call.
Still, it prefers First Resources in the plantations space.
As at 9.15am, Golden Agri-Resources' counter stood at S$0.455, while First Resources rose three Singapore cents to S$2.04.
Separately, the research house said dynamics continue to improve in Singapore's Reits. It said Singapore's hospitality market has displayed signs of turning around in the second half of 2014, a trend CIMB believes will continue in 2015.
"With more upcoming key events and attractions, we remain confident that Singapore hotels could end the year with a stronger revenue per available room (RevPAR). We also maintain our bullish view on the hospitality market in 2015. Given the expected 2-4 per cent rise in visitor arrivals in 2015 and potentially longer stays, we expect total visitor days (TVD) to climb in 2015 and meet the upcoming 4 per cent supply of hotel rooms."
CIMB has maintained "overweight" on the sector, with CDL Hospitality Trusts and OUE Hospitality Trust as its preferred picks.
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