Olam

Olam: plans to release the results of its annual strategic review tmrw, 25 Apr, after market. The results of the review will likely be of greater interest this yr, with attacks on the firm by Muddy Waters back in Nov last yr, still fresh in investors’ minds. Given Olam’s aggressive acquisition strategy over the past years, Citi believes investors may now desire a more cautious approach, with preference for Olam to re-focus on an asset-light strategy, and on shorter gestation projects with greater focus on agri. Citi thinks investors are looking for comfort from this strategic review that Olam’s ROE will show a sharper recovery trend in the coming years, with poorer projects pruned and a renewed focus on agriculture. The house maintains Buy with TP $2.60.