Climate change and environmentalism are gaining greater attention around the world. Palm oil production is perceived as a serious offender as cultivation has contributed to deforestation in previously untouched areas, which could affect investors' sentiment towards MP Evans (MPE). Its first-half results for 2019 were not well received by the market, and its share price has been on the decline ever since.
IC TIP:
Sell
at
637p
Tip style
Sell
Risk rating
Medium
Timescale
Medium Term
Bull points
Signs of recovery in palm oil prices
Production becoming more efficient
Bear points
Environmental impact of palm oil
Analysts downgrading forecasts
Volatile price of crude palm oil
Easily replaced by other oils