Public Investment starts Felda Global with ‘outperform’
KUALA LUMPUR, June 26 — Public Investment Bank started Felda Global Ventures Holdings, the world's third-largest palm oil company by acreage, with an 'outperform' call on the back of a stronger sales growth outlook.
"We like the stock for its impending aggressive expansion plans, turnaround in the downstream segment, and stronger sales growth, banking on its new business structure," the research house said in a note on Tuesday.
Pegging a fair value of 5.44 ringgit at Felda Global, Public Investment said its upcoming listing will also help re-rate market valuations and inject renewed catalysts into Malaysia's plantation sector.
Felda Global has said in news report it is actively looking for more plantation asset acquisitions in the Southeast Asian and African regions, as well as expansion of its downstream business with the aim of becoming amongst the world's top five commodities giants by 2020. — Reuters