Olam kept at 'neutral' by Goldman Sachs with $2.10 target price

Stock Name: Olam Intl
Company Name: OLAM INTERNATIONAL LIMITED

Research House: Golman Sachs

Price Call: HOLD

Target Price: 2.10

SINGAPORE (Feb 16): Goldman Sachs has lowered its target price for Olam International to $2.10 from $2.20 for its lower-than-expected earnings in 6MFY15 on the back of currency depreciation.

Olam recorded a net profit of $165 million in 6MFY15, 39% lower than Goldman Sachs' FY15E estimates.

The house believes currency depreciation is Olam's downfall, negatively affecting its 2Q EBITDA by $30 million.