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Kenanga keeps 'market perform' on Felda Global

February 27, 2014

GIVEN the bright prospects for the plantation division, Kenanga Research has maintained a "market perform" on Felda Global Ventures Holdings Bhd (FGV).

The research house said it may consider upgrading the Malaysian-based global agricultural and commodity-based company as it saw a sustainable turnaround in its downstream operations.

"We believe its core net profit for financial year 2014 should improve in line with our expectations for better crude palm oil prices of RM2,800 per tonne, compared with RM2,333 per tonne recorded last year," it said in a statement yesterday.

Kenanga Research maintained a target price of RM4.75 for FGV.

Meanwhile, Public Investment Bank Bhd thinks the worst of quarterly results could be over for FGV and the downside risk is limited.

The firm, however, said judging by the unattractive valuations, the potential upside is also limited.

"We expect better earnings this year, given the recovery of crude palm oil prices attributed to various positive factors," Public Investment Bank said.

It has reaffirmed its "neutral" call on FGV, with target price of RM5.11 based on SOP valuations.

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Source: Business Times (Malaysia)

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