Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: DMG
At 10:30 a.m., Olam shares were up 2.7% at $2.63 on a volume of 20.4 million shares. The stock had fallen nearly 20% to $2.38 after CLSA raised concerns about Olam’s dependence on Nigerian export incentives and questioned its internal controls in a Feb 21 report.
“The Nigerian export incentives are open to all qualifying exporters and hence, we believe, it is unlikely that Olam is making excess earnings from these incentives or that it is the main group earnings driver,” Goldman Sachs said in a report.
Company Name: OLAM INTERNATIONAL LIMITED
Research House: DMG
Shares of commodities firm Olam International (OLAM.SI) rose as much as 3.9% on Thursday after several brokers reiterated their buy recommendations following Olam’s latest clarification of a negative report by CLSA earlier this week.
At 10:30 a.m., Olam shares were up 2.7% at $2.63 on a volume of 20.4 million shares. The stock had fallen nearly 20% to $2.38 after CLSA raised concerns about Olam’s dependence on Nigerian export incentives and questioned its internal controls in a Feb 21 report.
“The Nigerian export incentives are open to all qualifying exporters and hence, we believe, it is unlikely that Olam is making excess earnings from these incentives or that it is the main group earnings driver,” Goldman Sachs said in a report.
“In addition, we agree that the ‘reporting differences’, which are in the balance sheet and cash flow statement, are mainly reclassifications and largely immaterial,” it added.
DMG & Partners maintained its buy rating and $3.70 price target for Olam saying it felt Olam had largely addressed the concerns raised by CLSA.
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