UOB KayHian upgrades First Resources (EB5.SG) to Hold from Sell on improved upside to its $1.13 target price after recent price weakness, says Dow Jones.

UOB KayHian says outlook for palm oil producer turning positive with production expected to pick up in 2011 vs lower volume this year caused by tree stress, adverse weather conditions. But expects operating costs to rise next year due to aggressive planting, increased fertiliser needs. Suggests entering at $1.00.

Shares last +2.7% at $1.13.