Olam - Olam target raised to $4.25 by Credit Suisse; Keeps Outperform

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: Credit Suisse

Credit Suisse lifts Olam (O32.SG) target price to $4.25 from $3.50 after increasing fiscal FY11 earnings forecast by 17% on stronger volume, margin assumptions, says Dow Jones.



Credit Suisse, which is keeping its Outperform call, says: “Going forward, we expect further earnings-enhancing deals to be announced, as Olam continues to execute on its well-articulated new six-year strategic growth plan.”

Research house also notes growth strategy involves selectively integrating into higher-margin value chain segments in bid to increase pre-tax profit contribution from upstream, midstream, downstream businesses to 50% by FY15 from 26% in FY09.



Excluding exceptional items, core earnings for fiscal FY10 ended June +49% at $272.1 million. Shares +5.2% at $2.64.