Deutsche Bank has cut Golden Agri-Resources (E5H.SG) target to $0.59 from $0.72 after lowering estimates for palm oil prices by 10% to MYR2,500/tonne ($1,079/tonne) for 2010, to MYR2,700/tonne for 2011, says Dow Jones.

CPO price outlook based on oversupply conditions in oilseeds complex, seasonal uptick in palm oil production, less damaging El Nino effect. Despite target cut, keeps Buy call on view valuation attractive.

Notes stock has been underperforming peers mainly due to company entering into non-earnings accretive related-party transactions, such as recent US$142.8 million ($197.4 million) acquisition of noodles snack business in China owned by its controlling shareholder.

Shares off 0.9% at $0.53.