Indofood Agri's Brazil sugar buy positive: CIMB

CIMB is positive on Indofood Agri's (5JS.SG) acquisition of 50% in Brazil sugar mill and estates player CMAA for around US$71.7 million ($88.6 million).

"We believe that the acquisition will boost future earnings and help the group to partially shed its image as merely a holding company of SIMP (SIMP.JK)."

It expects the acquisition will allow the group to expand into Brazil's sugar and ethanol businesses and boost its earnings base.

"We continue to favor the stock due to its attractive valuations in terms of assets."

It rates the stock at Outperform with $1.51 target. The stock is down 0.4% at $1.32.