Reuters: Hot Stocks: STOCKS NEWS INDONESIA-UBS positive on livestock sector

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STOCKS NEWS INDONESIA-UBS positive on livestock sector Aug 2nd 2012, 08:08 Thu Aug 2, 2012 4:08am EDT UBS Investment Research took a positive stance on the Indonesian animal feed and livestock sector, saying poultry consumption in the country was rising with increasing per capita income, and initiated coverage on two companies. Indonesian poultry consumption is now 7 kg per capita, much lower than the regional average, UBS said and forecast 8 kg per capita poultry consumption by 2014. "We expect the animal feed business to grow structurally at a 13 percent 2012-14 revenue CAGR...," UBS analyst Ronald Liem said in a note. UBS started Japfa Comfeed Indonesia Tbk with a 'buy' rating and a target price of 6,000 rupiah, citing structural growth and the company's leverage to corn and soymeal prices, which the brokerage expects would soften in 2013. Initiating coverage on Charoen Pokphand Indonesia Tbk , the largest integrated poultry producer in the country, with a 'neutral' rating and a target price of 3,450 rupiah, UBS said, "We like the company's strong balance sheet, which is essential to sustain growth in the poultry business." By 0134pm (0734 GMT), Japfa shares were up 1.15 percent at 4,400 rupiah per share, while Charoen shares were down 2.4 percent at 3,050 rupiah per share. The broader index was down 0.41 percent. 1341 (0741 GMT) (Reporting by Andjarsari Paramaditha,; Editing by Anupama Dwivedi) Link this Share this Digg this Email Reprints

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