DBS Group Research analyst William Simadiputra has kept his “buy” call on Bumitama Agri P8Z 0.83% (BAL) as it is one of the few palm oil companies that is poised to benefit from a tight crude palm oil (CPO) supply outlook on the back of a limited expansion and rejuvenation in palm oil estates in Indonesia.

“BAL has exposure to Indonesia’s domestic CPO price trend, which is poised to recover in 2H2023 on recoverin demand and [in] 2024 on limited supply outlook driven by El Nino,” says Simadiputra, who also kept his target price unchanged at 90 cents. BAL’s well-run palm oil estates are expected to be minimally impacted by the weather, he adds.

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Source: The Edge Singapore