First Resources' stock is soaring 7.80% in Monday's trading session, driven by positive analyst forecasts and expectations of continued earnings growth. The palm oil producer's shares climbed to S$2.22, reflecting investor optimism about the company's near-term prospects.
RHB Research's Singapore team has raised its outlook for First Resources, citing expectations of sequential earnings growth in the fourth quarter. The company anticipates Q4 to bring the highest quarterly output for the year and maintains its guidance for a 20%-25% growth in fresh fruit bunches for 2025. Additionally, First Resources' unit costs are projected to moderate due to reduced fertilization activities, potentially boosting profitability.
In response to these positive indicators, RHB has significantly increased its earnings forecasts for First Resources, raising projections by 10% for 2025, 21% for 2026, and 14% for 2027. The research firm has also lifted its target price for the stock to S$2.55 from S$2.10, while maintaining a buy rating. This upward revision in forecasts and target price appears to be a key factor driving the stock's substantial gains in today's trading session.