Bumitama Agri's unit costs are likely to rise due to higher prices of fertilizer and diesel, RHB Research analysts say in a note. The palm oil producer now expects unit costs to increase around 10% this year versus 5%-10% projected previously. RHB maintains its target price of S$1.70. However, it upgrades the stock to neutral from sell, citing a fair valuation after a 15% share-price decline over the past two weeks. Shares are last up 1.6% at S$1.90. (amanda.lee@wsj.com)
Bumitama Agri Unit Costs Set to Rise — Market Talk
Earlier from Bumitama Agri
- Bumitama Agri's Earnings Momentum May Continue in 2Q — Market Talk
- Bumitama Agri Posts HY Profit Attributable 1,536 Billion Rupiah
- Bumitama Agri Posts Quarterly Revenue Reached 5.15 Trln Rupiah