Wilmar: Daiwa upgrades to Buy from O/PF after its steep 17% share-price fall since Nov 9, citing that while the group’s poor 3Q10 results, its property forays in China & the threat of PRC food-price controls are negative developments, its share price has overreacted & there is distinct value now. Notes Wilmar's market cap has fallen 13.3x the size of potential investments in 2 China property projects.
Expects 4Q10 and 1Q11 results to act as a catalyst & validate its view that net profit could surprise positively. The key drivers for the upside surprise could be a recovery in soy-crush margins in China. Keeps $6.73 target. Shares still struggling to stay above 50-day MA convincingly.
No comments:
Post a Comment