Macquarie Research in a Mar 18 research report says: "Olam just announced that it has renewed and increased its revolving multicurrency trade facility for US$170 million. The renewal of its trade facilities across the next few months are important events, we believe, after the difficulties registered across the credit world in the past nine months.
"We estimate Olam can register positive earnings growth of 13% y-o-y in FY2009 (stripping out the gains from the convertible bonds buyback), driven by volume growth of 16% across the produce in which it deals. Twelve-month price target of $1.65 based on a PER methodology.In our view, Olam's ability to scale earnings without relying on profits driven by commodity prices offers a better risk/reward proposition than for other soft commodity growers. OUTPERFORM
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment