Olam: (The Edge)

Olam: (The Edge) Poised for rebound on decade-low valuations and possible global reflation. Analysts beginning to say Olam stocks look cheap. Morgan Stanley think Olam’s 30% correction is overdone, and believes the weakness in the non-food segment is cyclical, not structural, while food segment, which makes up abt 80% of Olam’s portfolio will continue to show resilient earnings and strong growth. Based on house estimates, Olam trading at 31% discount to peers, a 34% discount to its 2 yr P/E and an all time P/B low. Deutsche add that policymakers only seem to reflate policy when mkts are in a panic like now, and think we are on the verge of another policy reflation in the coming weeks or mths. At $1.80, grp is trading not far from its 52 wk low of $1.53 and looks relatively cheap at 10.9x earnings. Macquarie sees the Co’s underlying growth story becoming visible again from the Sept qtr, and recommend investors accumulate its shares now., with attractive value and risk-reward.