The research house said it views Sime as substantially overvalued and lacking in focus.
"For large cap plantation exposure, we prefer Wilmar International and Golden Agri, both of which are focused and well managed and are trading at price earnings multiples of under 15 times compared with Sime's 18 times," it said in a report.
While OSK views the appointment of Datuk Mohd Bakke Salleh as Sime's new president and group chief executive officer (CEO) as positive, it added that the market is likely to wait and see he is able to straighten out Sime and turn it into a respectable company.
"We find it unusual that Sime's board of directors has yet to meet Mohd Bakke. The appointment of a CEO is the board's prerogative and person appointed should have gone through a series of meetings with the board to ensure that he is the right person for the job," it added.
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