Olam

Olam: Following Nomura and Credit Suisse Buy Calls yesterday, Deutsche maintains Buy but raises TP to $3.60 from $3.20, citing strong growth prospects and appealing valuations, while grp’s diversification limits exposure to high-risk countries. At current price, valuations are compelling, with grp trading at 14x Forward P/E vs its historical average of 19x ….

Meanwhile, Olam CEO highlights that tackling commodity speculation is not the solution to food price spikes which are in fact the result of policy failures by govts. Add that commodity futures mkts play a huge role in price discovery, a huge role in hedging your exposure. Highlight that the biggest crisis we're going to face over the next 40, 50 yrs, is going to be food, given its links to other major devt issues such as energy, water and climate change.