22/11/2012 (Business Times) - Kenanga Research has cut its rating for Malaysian palm oil plantation company Kuala Lumpur Kepong Bhd (KLK) to "underperform" from "market perform" after reducing its forecast for crude palm oil (CPO) prices.

The brokerage reduced its CPO price forecast for next year by 5 percent to RM2,850 per metric tonne, consequently reducing its forecast net profit for KLK by 10 percent, in a report issued on Thursday.

Kenanga slashed its target price for KLK to RM20 from RM22.3 previously. Shares of KLK were up 0.1 percent at RM20.58 as of 9.49 am. -- Reuters