MP Evans’ put in a strong performance in the first half of 2022 helped by the 43% rise in palm oil prices, said broker Peel Hunt.
Pricing has pulled back over the last few months, alongside numerous changes to the Indonesian tax and export regime, but looks to have now stabilised, which should give a more helpful background going forwards, said the broker.
Cash flow has been stellar and the company is now in a net cash position. The dividend was increased by 25%.
The shares are trading on a 35% discount to historic NAV for 2021, offer a 5.6% yield and trade on a forward PE of 7.4 times to December 2023.
'Buy 'with a target price of 1,140p, said the broker, against a price of 800p, down 1.5%, today.