UBS downgrades Golden Agri-Resources

UBS starts Golden Agri Resources at Sell with $0.67 target, based on 8.2X '09 earnings forecast. Says margins will come under pressure in '09 as potential increase in palm oil prices, higher oil yield won't be enough to offset higher fertilizer cost. Adds, valuations excessive, with stock trading at premium to its 5-year average P/E of 8.4X. Says key catalyst will be palm oil price, which "has not moved up as much as we expected" due to record-high inventories.