Olam's clarification should end 'misgivings', Credit Suisse says

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

Olam International’s 10-page clarification response to a “foreign broker” report which raised questions about the company’s earnings, along with a conference call hosted by management, should “clear any misgivings going forward,” Credit Suisse Group AG said.

The “sharp pull-back” means that Olam now trades at 13 times forward price-earnings, at one standard deviation below its historical average, which offers an “attractive entry point,” analysts Su Tye Chua and Christopher Chang wrote in a report today. The brokerage said it maintained its forecasts, $4.20 target price and reiterated its “outperform” rating.