Plantation stocks trading at ‘sizeable’ upside after haze-induced sell-off: OCBC

[SINGAPORE] Bumitama Agri is OCBC Group Research’s preferred pick among Singapore-listed palm oil plantation players, which are trading at a “sizeable” potential upside following a sell-off caused by the transboundary haze from Indonesia.

In a research note on Oct 21, the brokerage set a fair value of S$2.40 for Bumitama, representing a 39 per cent upside from its closing price on Oct 20.

It also set a fair value of S$0.31 for Golden Agri Resources and S$3.97 for Wilmar International , representing a potential 15 per cent and 17 per cent upside respectively, based on their Oct 20 closing prices.