Despite Golden Agri-Resources’ weaker-than-expected results for 1QFY2021 ended March 31, RHB Securities has kept its “trading buy” rating and target price of 30 cents for the palm oil company.

The continued optimism is driven by the expectation that the company will record better earnings in the quarters ahead, as margins and volumes at its downstream division improves.

Moreover, the stock’s valuation remains inexpensive, at a single-digit price earnings ratio derived from its FY2021 earnings forecast, says RHB.

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