March 17, 2011

EVERGRN - OSK Research keeps Buy call on Evergreen, lowers TP to RM1.73

Stock Name: EVERGRN
Company Name: EVERGREEN FIBREBOARD BHD
Research House: OSK

KUALA LUMPUR: OSK Research said it recently received an update on Evergreen Fibreboard (EFB)'s business operations and found that a spate of increases in the prices of raw materials had chipped away the company's profits.

The research house said on Thursday, March 17 that Evergreen was also hit by a shortage of raw material and was unable to sell as much timber products, which in turn also affected its topline.

'These factors prompt us to lower our earnings estimates and arrive at a lower target price of RM1.73 from RM2.02 previously. The stock remains a BUY,' it said.

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