Olam: Macquarie says "it's a good time to revisit" Olam . While it doesn't expect Olam to reach its net profit target of US$1 b by FY16, due to margin shortfalls, it forecasts a powerful growth trajectory as new investments contribute, estimating 24% CAGR ex-biological gains through FY16.
Says it's not only intrinsically compelling, but also best among the agri players under its coverage. Cuts TP to $2.80 from $3.10 after lowering FY12-13 EPS, forecasts an average 15% on recent disappointing results.
Expects a 4th successive quarter of flat growth to be reported for fiscal 3Q12 in May, as profit in the Industrial Raw Materials division remains subdued, before seeing a rebound in fiscal 4Q12. From FY13 onwards, sees very strong earnings growth as Olam's new investments start to contribute more meaningfully.
Keeps an Outperform call, tipping it as its top Singapore-listed agribusiness pick.
The stock is up 0.4% at $2.32.
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