Indofood Agri's 1H08 net profit only 46% of concensus

Goldman Sachs cuts Indofood Agri target price to $3.10 from $3.20; maintains Buy rating. Broker says 1H08 profit only 40% of broker's full year forecast, 46% of consensus, but says 2H usually seasonally stronger on higher palm oil production, so full year forecast should still be achievable. Says lower target price reflects 2% cut to FY08 earnings estimate to reflect slower pace of cost savings for plantation firm's subsidiary London Sumatra, target price still assumes same 14X PE multiple.

Indofood Agri reported 263% on-year jump in 1H08 net profit to $185 m, CIMB upgrades stock to Neutral from Underperform, raises target price to $1.63 from $1.53, says shares now offer good upside following recent underperformance. Says results in line with broker's own forecast, but below consensus with 1H08 core net profit making up only 46% of full year consensus estimate.