Thursday, August 26, 2010

Olam - Olam +7.2%; Still under-appreciated: Morgan Stanley

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: Morgan Stanly


Interest in Olam (O32.SG) not letting up as investors still caught up with commodities trader’s strong fiscal FY10 performance, says Dow Jones.



Having reached 3-week high of $2.72 in intraday trade on robust volume, stock may in coming days test year-to-date peak of $2.84 set earlier this month; last +7.2% at $2.69.



“The results took the market by surprise, but they certainly rounded off a great year for the company,” says Kim Eng Securities, which has Buy call with $3.15 target.


Morgan Stanley, which has Overweight call with $3.16 target, says full growth potential of Olam’s past acquisitions yet to be recognised as some investments still in gestation phase; “we continue to believe Olam’s growth story and execution capabilities are under-appreciated at current levels.”



FY10 net profit, excluding exceptional items, +49.3% at $272.1 million.





 

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