Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
DBS Vickers Securities in a Nov 15 research report says: "Olam reported earnings of $34.2 million (+15% y-o-y, -73% q-o-q) representing 8% of our FY2012 forecast, which was at the top end of typical 1Q contribution range of 5-8%.
"With 1QFY12 results above expectations, we raised FY2012-2014F by 1-15% imputing higher NC/MT of $124-135 versus $116-133 previously. Our target price is raised accordingly to $2.35 from $2.15. Despite strong performance amid extreme volatility and macro uncertainty in 1QFY12, we maintain hold rating for Olam due to limited catalysts in the near term.
"Its projected 26.9% 3-year core earnings CAGR and business resilience (exposure to food demand) have been priced in. However, financial close of Gabon urea project in 1HCY12 could reap potential upside of 47 per share. MAINTAIN HOLD."
Company Name: OLAM INTERNATIONAL LIMITED
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 2.35 |
DBS Vickers Securities in a Nov 15 research report says: "Olam reported earnings of $34.2 million (+15% y-o-y, -73% q-o-q) representing 8% of our FY2012 forecast, which was at the top end of typical 1Q contribution range of 5-8%.
"With 1QFY12 results above expectations, we raised FY2012-2014F by 1-15% imputing higher NC/MT of $124-135 versus $116-133 previously. Our target price is raised accordingly to $2.35 from $2.15. Despite strong performance amid extreme volatility and macro uncertainty in 1QFY12, we maintain hold rating for Olam due to limited catalysts in the near term.
"Its projected 26.9% 3-year core earnings CAGR and business resilience (exposure to food demand) have been priced in. However, financial close of Gabon urea project in 1HCY12 could reap potential upside of 47 per share. MAINTAIN HOLD."
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