CIMB Research cut its target price for palm oil firm Indofood Agri Resources to S$1.55 from S$1.82 and kept its 'outperform' rating, citing weak quarterly core earnings due to high estate costs and lower rubber earnings.
By 0108 GMT, Indofood Agri shares fell 2.8 percent to S$1.225, and have dropped 3.2 percent since the start of the year, compared to a 20 percent loss in the FTSE ST Consumer Goods Index.
Indofood Agri's third quarter net profit rose 22 percent to S$35 million from a year ago, lifted by higher sales volume of palm products and contribution from sugar operations.
However, CIMB said its core net profit for July-September fell 24 percent to 242 rupiah from a year ago as higher costs and inventories offset stronger sugar earnings.
The broker noted that Indofood said it is keeping its 2012 crude palm oil production target of 890,000-900,000 tonnes, suggesting a strong fourth quarter output, which could help lift sales.
0917 (0117 GMT)