CGS-CIMB analyst Wee Kuang Tay upgraded the rating on Wilmar International to a Buy yesterday, setting a price target of S$3.30.
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Wee Kuang Tay’s rating is based on several key considerations regarding Wilmar International’s current and future prospects. Despite a significant fine imposed by the Indonesian Supreme Court, which has already been factored into the share price, Tay believes that Wilmar’s core operations are set to improve. The company’s China soybean crushing margins are expected to outperform peers, driven by competitive feedstock pricing and robust demand for soybean meal.
Looking ahead, Tay anticipates a gradual recovery in Wilmar’s business segments, particularly in China, which is expected to bolster earnings in the coming years. The analyst has upgraded the stock to a Buy rating, reflecting confidence in the company’s ability to overcome recent challenges and deliver improved financial performance. The target price has been raised, supported by expectations of stronger-than-expected margins and utilization rates, as well as firm commodity prices. However, potential risks such as further legal issues or policy changes remain considerations for investors.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WLMIF in relation to earlier this year.