Analyst from CGS International maintained a Buy rating on First Resources (Singapore) and increased the price target to S$4.39 from S$2.60.
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analyst has given his Buy rating due to a combination of factors, including stronger-than-expected operational gains following the Austindo Nusantara Jaya acquisition and upgraded earnings forecasts. The company is delivering higher fresh fruit bunch yields and improved oil extraction rates, which, together with firmer crude palm oil prices, underpin a higher valuation and support the revised target price of S$4.39.
In addition, First Resources is positioned to benefit from Indonesia’s upcoming B50 biodiesel mandate, with resilient biodiesel margins and potential volume upside even at already high utilisation levels. While fertiliser and other input costs are rising, the analyst believes these pressures are manageable given robust upstream momentum and the company’s limited exposure to external diesel costs, reinforcing confidence in continued earnings growth and shareholder returns.
In another report released on May 15, DBS also maintained a Buy rating on the stock with a S$5.00 price target.