Wilmar

Wilmar: technically, next support is at ~$6.20 (18 May gap). Near term, indicators starting to hook down from overbought levels, hence some price weakness to be expected. Stock saw a number of downgrades today.
Daiwa, CIMB downgrade to Hold from Buy/Outperform, cut targets to $7.04, $6.70 respectively. Goldman reduces target to $7 from $8…

Dip may provide window to accumulate as longer term uptrend still appears intact. Mgt maintains that 3Q’s trading losses were exceptional, and likely to normalize in subsequent quarters. Expects branded consumer margins to pick up as managed to raise cooking oil prices in China by ~10% since mid-Oct. Says strong volume growth in all segments, underpinned by robust consumption growth in emerging mkts, a key earnings driver not to be overlooked…

New acquisitions in Sucrogen (+~US$100m EBITDA/yr), Nat Oleo (turnaround from current losses) may also give boost to bottom line in FY11.
Deutsche keeps Buy, $7.50 target for now, pending further clarification on prospects in the current up-cycle of agri-commodities prices…

Morgan Stanley recommends Wilmar as a play on the China story. Says co less vulnerable to policy and asset price cycles in China. Notes Wilmar controls 25% of the Chinese oilseed crushing market and 40% of the branded cooking oil market, which is forecast to achieve mid-teens avg EPS growth from 2011-15.