Wilmar

Wilmar: Nomura tips the stock’s current valuations offer a very good entry point as its business model, scale and management remain solid. Sees Wilmar's crush margins remaining volatile, in line with global players, but expects its palm refining margins to be more stable (as Wilmar controls the market) and believes it could get a higher multiple. But notes it still has concerns over a lack of organic growth opportunities due to a high market share in most of its current segments, while its downstream operations are too small to move the needle. Nomura would like to see Wilmar become more aggressive on M&As. It rates the stock at Buy with $4.60 target, valuing the stock at 13.4x 2013 P/E vs forward 11.1x normalized P/E. The stock is down 0.8% at S$3.65. Stock has moved penetrated above its 20-day moving average but yet to break above its $3.78 double top.