Indofood Agri Resources (5JS.SG) off 5.3% at $2.51 after opening in positive territory; 3Q10 consolidated revenue +9.7% on-quarter, net profit +13.3% on-quarter, helped by higher CPO selling prices, says Dow Jones.

High beta stock (weekly beta at 2.01) likely falling back after +19% vs $2.22 August low; despite bullish 4Q outlook for CPO, prices expected to moderate in 2011. Credit Suisse has Neutral rating, says palm oil prices usually peak December-March, but remains bearish in 2011.

Says at $2.67 (Thursday intraday high), with palm oil at MYR3,000/tonne ($1,253/tonne), Indofood Agri trades at 13.4x FY10 P/E, 11.0x FY11 P/E; has 2011 profit sensitivity of over 7.0% for every MYR100/tonne change in CPO price.

For investors looking to take advantage of seasonal rally, Indofood one of highest leveraged planters to rising palm oil prices; CPO January contract hit 27-month high Thursday, closed MYR3,085/tonne. 30-day SMA at $2.442, just below intraday low, may support.

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