Plantations & Commodities: CIMB note that supply chain managers’ earnings met expectations in 1Q11, while higher commodity prices and volume expansion boosted revenues of Noble and Olam by 75.6% and 74.7% yoy, while core earnings grew 19.2% and 23.3% respectively. House remain O/w on sector, with Noble (TP: $2.70) as house preferred supply chain manager…..
Add that while Noble shares have come under pressure amid fears of a slump in commodity prices, highlight that earnings are hedged against price volatility and house continue to see re-rating catalysts from vol growth and earnings contribution from recent investments.
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