Olam

Olam: +7.4% to $1.745 after Co. said it plans to buy back up to 10% of its shares may be a trifle over-enthusiastic. While DBSV says while it is positive on the buyback given potential EPS accretion, it remains cautious near-term on expectations upcoming fiscal 4Q12 results will be weak amid challenging operating conditions in the cotton segment. House keeps Hold call with $2.00 TP. In addition, analysts have cited concerns over Olam's gearing as it pursues its "string of pearls" acquisition strategy. Hot off Thursday's announcement it acquired Nigerian dairy-goods company Kayass Enterprises for about US$66.5m, the president director of its Indonesian unit said Olam is "seriously looking" to buy sugar-cane plantations there. The May 22 peak at $1.85 may offer a near-term cap, while any resurgence of risk-off sentiment could push the share to test last week's $1.52 low.