Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: DMG
Company Name: OLAM INTERNATIONAL LIMITED
Research House: DMG
DMG downgrades Olam (O32.SG) to Neutral from Buy on limited upside to its $3.24 target price after 24.4% year-to-date gain vs STI +9.0%, driven by strong fiscal FY10 results released in August, recent merger talks with Louis Dreyfus Commodities, says Dow Jones.
Says while it’s positive about commodity supplier’s long-term acquisition-driven growth prospects, current share price has factored in earnings growth for next 2 years. While Olam could reap synergies from union with Louis Dreyfus, reckons merger unlikely as both parties may have to agree to reduced management control; “we see this as a major hurdle.”
Says while it’s positive about commodity supplier’s long-term acquisition-driven growth prospects, current share price has factored in earnings growth for next 2 years. While Olam could reap synergies from union with Louis Dreyfus, reckons merger unlikely as both parties may have to agree to reduced management control; “we see this as a major hurdle.”
Shares +0.6% at $3.22.
No comments:
Post a Comment