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UOB Kay Hian has significantly raised its target price for Bumitama Agri stock to SGD 2.54 from the previous SGD 2.15 as of September 30, 2026. This adjustment provides the plantation group with a fresh, earnings-driven valuation reference. In tandem with the target hike, the brokerage firm increased its 2027 net profit forecast for the company by 9.60% while maintaining a 'Buy' rating.
The revised outlook, published on September 30, 2026, stems from firmer assumptions regarding crude palm oil (CPO) prices and heightening supply risks associated with El Nino conditions. Specifically, the report adjusted its 2027 CPO price assumption upward to RM 4,700 per tonne, compared to the earlier estimate of RM 4,400 per tonne, positioning Bumitama as its top selection within the plantation sector.
This target revision represents an 18.14% increase over the previous benchmark. While the profit forecast was upgraded by nearly 10%, UOB Kay Hian noted that an increase in export levies would likely offset a portion of these earnings benefits. The brokerage also highlighted the company's fiscal 2025 performance, where Bumitama reported revenue of IDR 19.95 trillion and a net profit of IDR 3.37 trillion. During that period, the group harvested 3.43 million metric tonnes of fresh fruit bunches, with yields improving by 5% to reach 19.5 tonnes per hectare.
Despite the positive pricing leverage, analysts identified two primary headwinds: higher Indonesian export duties and a projected 1.00% year-over-year decline in Bumitama's 2027 fresh fruit bunch output. Consequently, the profit upgrade remains linked to a more cautious production outlook.
As of mid-October 2026, Bumitama Agri maintained a market capitalization of SGD 3.3 billion, with a 52-week trading range between SGD 1.23 and SGD 2.50. Investors are now looking toward November 10, 2026, for the company's next earnings announcement to gauge the impact of current market volatility on the group's operational results.
Source: ad-hoc-news.de