Wilmar

Wilmar: OCBC maintains Hold with $3.06 TP. Note that share buyback boost but outlook still muted. House still not convinced that there is a structural improvement in WIL’s near-term fundamentals. Nevertheless, note that the market is adopting a more risk-on approach on the back of QE3. Hence raise valuation peg from 12.5x to 13.5x, which sees our fair value edging up from S$2.90 to S$3.06 (still based on blended FY12/13F EPS). But as the fundamental outlook is still rather muted, maintain HOLD; and investors may consider taking profit around $3.40 or higher.