Wilmar upgraded to Buy by Goldman Sachs

Goldman Sachs upgrades Wilmar to Buy from Neutral on back of more positive view on crude palm oil (CPO) prices, lifts target price to $4.10 from $3.15. Says tightening soybean supply, Malaysia's low CPO inventories, better outlook for crude oil prices should support CPO prices; raises FY09-FY11 CPO price forecasts by 17%-20%. Says Wilmar looks particularly attractive as has, "lowest valuations among large-cap plantation stocks, high organic growth potential and may benefit from a higher MSCI weighting." Says stock deserves to trade at premium to Singapore market given resilient earnings profile; "Wilmar should be a core holding for long-term investors as it offers high quality, high-growth exposure to the palm oil sector given market leadership in its downstream businesses and strong organic growth potential."