Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: UOB KayHian
Company Name: OLAM INTERNATIONAL LIMITED
Research House: UOB KayHian
UOB KayHian starts Olam (O32.SG) at Buy with $3.80 target price, implying 18.8x forward P/E, says Dow Jones.
UOB KayHian says investors seeking to hedge against falling USD or inflation can consider Olam as company will benefit from agri-commodity inflation; “as demand for agri-commodities is relatively inelastic, most price increases can be passed on to their customers with relative ease, resulting in higher profits, assuming similar margins are achieved.”
Broker tips FY12-FY13 earnings growth of 30%-18%, boosted by profits generated from acquisitions. Says ongoing merger talks with Louis Dreyfus Commodities, if successful, will lead to mutual benefits. Shares flat at $3.17.
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