Olam

Olam: StanChart notes the banks and customers have continued to show their support for Olam, evidenced by increased lending facilities and higher volumes. Investors however remain nervous and the shares trade at 10x fwd P/E. This creates an opportunity. The house sees a catalyst, as Olam hosts five field trips (America, Africa, Australia, Asia) and four investor days, which should materially lift investor understanding and shareholder confidence. Believes this will lead to supportive re-rating. With bombed-out valuations a good starting point, the house believes its high conviction Outperform call is timely. Upgrades TP to $2.35 from $2.12.