Olam

Olam: GS initiates at Neutral with TP $3.20. Notes that ROE peaked at 30% in FY08 and since de-rated to 17% in FY09-10. While co is investing in upstream businesses to boost margins and restore ROE, it will take time to mature. Upstream earnings to be subject to agriculture prices. Highlights that co tends to contract forwards on a long duration which shld reduce correlation with short-term spot prices.