Wilmar International (WLMIF – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Heidi Mo from UOB Kay Hian maintained a Hold rating on the stock and has a S$3.18 price target.
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Heidi Mo has given his Hold rating due to a combination of factors affecting Wilmar International’s performance. The company is anticipated to show a quarter-on-quarter recovery in the fourth quarter of 2024, yet its overall yearly performance is expected to remain below both the firm’s and the consensus expectations. This underperformance is attributed to lower-than-expected contributions from Wilmar’s operations in China and its sugar division.
While there are positive developments, such as higher crude palm oil prices and improved processing margins, these are offset by challenges in other areas. The Chinese market is witnessing improved sales volumes, but margins remain thin, and the sugar division is experiencing weakening earnings due to harvest delays. Consequently, despite a higher target price, the modest consumer sentiment outlook in China and the mixed performance across different segments justify the Hold recommendation.
According to TipRanks, Mo is ranked #2785 out of 9370 analysts.