Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: Morgan Stanly
It notes, Olam’s 2Q adjusted PAT growth of 66% vs the house’s expectation for a 35% growth. “We believe Olam is in an early stage of transitioning its solid supply chain business into an even more unique business model with selective presence across lucrative segments of the value chain.”
Company Name: OLAM INTERNATIONAL LIMITED
Research House: Morgan Stanly
Morgan Stanley raises Olam International’s (O32.SG) target price to $3.78 from $3.16 and maintains its Overweight call on the stock. It also raises its EPS estimates by 5%-13% for FY11-FY15 “on the back of strong execution, integration of key new assets as well as near-term benefit from improvement in supply chain margins in the current inflationary environment.”
It notes, Olam’s 2Q adjusted PAT growth of 66% vs the house’s expectation for a 35% growth. “We believe Olam is in an early stage of transitioning its solid supply chain business into an even more unique business model with selective presence across lucrative segments of the value chain.”
It notes “(the) management appears confident in its growth prospects and (has) raised its target of achieving 4X-5X growth in intrinsic value by FY15 against the erstwhile target of 3X-4X.”
It expects Olam to deliver an EPS CAGR of 24.3% over the next five years with upside risk.
Shares are off 2.3% at $2.97.
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