Olam

Olam: Following Kim Eng’s downgrade of the stock yesterday to Hold from Buy (TP $3.23), CLSA maintains its Sell rating with the lowest TP of $1.94 among the other houses. Notes that at this stage, stock is fluid and a potential merger or other collaborations with Louis Dreyfus may or may not materialize. Recommends investors take profit on the recent sharp increase, as stock is trading at 87-100% premium to peers. Immediate support at $3.07 (higher end of breakup gap formed on 24th Sept)