Golden Agri Target Price $0.96 by OCBC Research

OCBC Investment Research has raised its target price for Singapore-listed palm oil firm Golden Agri-Resources (GAGR.SI) to $0.96 from $0.88 and kept its buy rating.

OCBC said it raised its earnings forecast for Golden Agri by 22.7% for this year to reflect improving margins and after it reported strong quarterly results.

Golden Agri said on Friday its first quarter net profit rose 161% from a year earlier to US$230.7 million ($287.4 million), lifted by higher sales volumes and crude palm oil prices.

However, OCBC only raised its 2011 revenue estimate for Golden Agri by 3.3% as it lowered its expectations for crude palm oil prices in the second half of the year due to increased supplies.