Olam - Olam raised to Buy by Deutsche Bk; Ups target to $3.60

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: Deutsche Bank

Deutsche Bank upgrades Olam International (O32.SG) to Buy from Hold and raises target price to $3.60 from $2.68 as it benefits from new acquisitions made over the last three years.

“Since embarking on a string of acquisitions three years ago, Olam has progressed in most of the investments, with 14 out of 17 being tracked above targets,” Deutsche Bank says in a note; “Olam’s six-year growth strategy will likely involve further expansion into the upstream and higher value-added processing businesses.”

The house tips Olam’s earnings to rise 24% CAGR, backed by 14% volume growth and a 7% margin expansion over the next three years as it benefits from rising global food demand, particularly in emerging markets.

The stock is +1.7% at $3.07.