JPMorgan has raised its share price target for Singapore palm oil firm First Resources Ltd to S$2.20 from S$2.10 and kept its overweight rating, citing strong production growth and expansion into the refining business.
By 0700 GMT, shares of First Resources were 0.3 percent higher at S$1.925. They have gained 27.5 percent so far this year.
The broker also raised its 2012 and 2013 earnings estimates for First Resources by 16 and 24 percent respectively, adding that the company remains one of its top picks for the sector.
The continued strength in crude palm oil (CPO) prices, driven by tight soybean supply, may benefit firms such as First Resources as it can achieve strong CPO production and deliver better-than-expected quarterly results, JPMorgan said.
It added that First Resources is one of the most efficient palm oil players in the region and so far this year has recorded CPO production growth of 27.2 percent year-on-year.
1502 (0702 GMT)
(Reporting by Charmian Kok in Singapore; charmian.kok.thomsonreuters.com)