KUALA LUMPUR: AmResearch maintained its ‘buy’ call on conglomerate Sime Darby Bhd's long-term prospects and expect the stock to benefit from any upticks in crude oil prices.
The research firm said Sime Darby’s plantation growth prospects still depended significantly on its Liberian operations, which has come to a halt due to the Ebola outbreak.
"We believe the long-term prospects for Sime Darby remains intact. Other catalysts include the potential listing of its auto division," said AmResearch in a research note.
Meanwhile, the research firm was neutral on Sime Darby's intention to abort its plan to acquire a 49 per cent stake in New Britain Palm Oil Ltd (NBPOL) from Kulim (M) Bhd.
"We believe the stumbling block could have to do with pricing and questions over Sime Darby’s ability to exert control over NBPOL, which is now largely independently managed apart from Kulim," said AmResearch.
On Monday, Sime Darby announced that it was not proceeding with the acquisition following the expiry of the exclusivity period.
As at 10.14am, Sime Darby was four sen better at RM9.19 with 72,600 shares transacted.-- Bernama