City broker finnCap has repeated its 1,250p price target for shares in MP Evans Group PLC (AIM:MPE) following the commission of a new palm oil mill in Sumatra, taking the total of its mills to six.
The stock traded sideways in the wake of the announcement at 822p. finnCap, the company’s corporate broker reckons it is worth 1,250p.
“The commissioning of MP Evans’ sixth palm oil mill at its Musi Rawas estate in South Sumatra allows it to increase its own milling capacity,” finnCap analysts said.
“The new mill should increase palm oil extraction rates from the current 20.4% for the estate towards the group average of 23.1%.”