DJ MARKET TALK: Kenanga Keeps Sime Darby At Market Perform
0714 GMT [Dow Jones] STOCK CALL: Kenanga Investment Bank maintains Sime Darby Bhd (4197.KU) at Market Perform but lowers its target to MYR9.00 from MYR9.80 previously, following significantly lower 1Q earnings from its plantations division. The house lowers its FY13-FY14 earnings forecast by 7% to MYR3.68 billion-MYR3.83 billion after factoring lower average crude palm oil price for 2013 and 2014 to MYR2,850/ton vs MYR3,000/ton previously. The conglomerate's "unexciting FY13 earnings growth should limit upside to its share price," it notes. Sime Darby is down 3.0% at MYR8.97.