Noble Group: CLSA upgrades to Buy from Outperform, with $2.39 TP. Note that with Brazil making up around 50% of global sugar exports, Noble is now firmly placed in sugar trade's nerve-center. Hence, it is positioned to capture the trade-flows that will result from sugar demand growth as emerging markets…..
Add that Noble'' recently-completed acquisition of two Sao Paolo sugar mills has catapulted it to Brazil's top five millers with cane crushing capacity of 17.5m mt and the ability to alternate production between sugar and ethanol will allow Noble to capture higher profits when product prices are out of synch. Tip sugar mills to contribute steady-state profit after tax and minority interests of around US$115m, or 10%-14% of Noble's PATMI.
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