KUALA LUMPUR:OSK Research is upgrading IOI Corp from a Sell to Neutral despite the lack of a rerating catalyst.
It said on Wednesday, Oct 5 that it believes the stock price could be close to a bottom, trading near its average trough PE of 13.5 times.
'Our unchanged earnings forecast factors in a conservative average palm oil price of only RM2,700 per tonne for CY12 and FFB production of 3.4m tonnes for FY12 compared to management's guidance of close to 3.5m tonnes. The stock's fair value remains unchanged at RM4.64,' it added.
It said on Wednesday, Oct 5 that it believes the stock price could be close to a bottom, trading near its average trough PE of 13.5 times.
'Our unchanged earnings forecast factors in a conservative average palm oil price of only RM2,700 per tonne for CY12 and FFB production of 3.4m tonnes for FY12 compared to management's guidance of close to 3.5m tonnes. The stock's fair value remains unchanged at RM4.64,' it added.
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