Analysts have mixed views on plantation firms’ earnings

High yield: CPO prices are expected to be around the RM2,500-per-tonne level this year. – AFP

PETALING JAYA: There are mixed views on how plantation companies’ earnings will fare in the coming months given the weaker crude palm oil (CPO) prices and the solid recovery in palm oil production from the first quarter of this year.

Analysts said there would not be any near-term negative impact on plantation companies’ earnings, although several of them have either downgraded or kept a neutral rating on plantation stocks due to the weakening trend of CPO prices going into 2018.