KUALA LUMPUR: OSK Research is upgrading its target price for Kulim to RM14.75 from RM11.20 previously to factor in its higher crude palm oil (CPO) price assumption.
The research house said on Tuesday, Jan 4 that although the stock has outperformed the sector in the past two to three months, its valuation remains inexpensive; hence it is maintaining its Buy call.
'In the absence of a corporate exercise, we believe a further re-rating will depend on palm oil price staying firm,' it said.
OSK Research said of late, laggard PLANTATION [] stocks have started to perk up, suggesting that interest has shifted to lesser known names.
'It is likely that buying interest will rotate back to Kulim, especially after its stock price consolidation,' it said.
The research house said on Tuesday, Jan 4 that although the stock has outperformed the sector in the past two to three months, its valuation remains inexpensive; hence it is maintaining its Buy call.
'In the absence of a corporate exercise, we believe a further re-rating will depend on palm oil price staying firm,' it said.
OSK Research said of late, laggard PLANTATION [] stocks have started to perk up, suggesting that interest has shifted to lesser known names.
'It is likely that buying interest will rotate back to Kulim, especially after its stock price consolidation,' it said.
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