First Resources - DBS Research 2021-12-07: Good Chance To Buy On Dip

First Resources - Good Chance To Buy On Dip

  • First Resources's share price has corrected by ~ 20% in November, presenting a good buying opportunity. Amid a current high CPO price trend, we believe First Resources (SGX:EB5) has room to deliver strong earnings in 4Q21 and 2022.
  • We maintain our FY22 earnings forecast despite the higher CPO selling price assumption, to buffer against any unexpected cost escalation especially on fertilizers. We forecast earnings to expand 8.6% y-o-y to US$146m in 2022.
  • First Resources has been trading below its 5-year average P/E multiple due to a narrowing CPO yield premium vs peers. However, we believe those concerns are well priced in at the current share price level. Stronger earnings growth ahead should help First Resources’s P/E multiple rerate above -1 standard deviation, in our view.
  • Upgrade First Resources to BUY with unchanged target price of S$1.83.

Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

William Simadiputra DBS Group Research | Singapore Research Team DBS Research | 2021-12-07
SGX Stock Analyst Report HOLD UPGRADE BUY 1.830 SAME 1.830

Previous report by DBS Research:
2021-02-02 First Resources - Great Bargain For Prime Performance

Target prices by 3 other brokers at First Resources Target Prices.
Listing of broker reports at First Resources Analyst Report.

Relevant links:
First Resources Share Price History,
First Resources Announcements,
First Resources Dividends & Corp Actions,
First Resources News Articles


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