First Resources' Earnings, Dividend Outlook Seen Supported by Higher Palm Oil Estimates
Dow Jones09-24 16:25
0825 GMT - First Resources' stronger earnings growth and dividend outlook will likely be supported by higher crude palm oil price estimates, says DBS Group Research's William Simadiputra in a note. The analyst expects crude palm oil prices to remain firm through 2027, buoyed by El Nino-related supply risks and elevated oil prices. He raises his 2027 earnings estimates for First Resources by 5% to US$500 million, which implies a 13% on-year growth. The Singapore-listed palm oil producer also remains committed to an up to 60% dividend payout ratio, he adds. DBS raises its target price to 6.30 Singapore dollars from S$5.00 and retains its buy rating. Shares rise 4.7% to S$4.65.
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