OSK has downgraded Golden Agri-Resources (E5H.SG) to Neutral from Trading Buy, citing uncertainty stemming from Greenpeace’s allegations of plantation group engaging in environmentally harmful practices, giving false information to investors, says Dow Jones.

OSK cuts target price to $0.50 from $0.68, based on 11x FY11 earnings vs 15x previously: “The company’s chairman has previously admitted that in an organization as large as this, there are bound to be certain areas of weaknesses, which led to the company strengthening its standard operating procedures. Still, the uncertainty created by the possibility of being investigated by the authorities could weaken the stock price considerably.”

Stock off 1.8% at $0.545.