Olam: UBS raises to Buy Vs Neutral with revised TP of $3.50 vs $3.20 as the agricultural commodities supplier has exhibited strong profitability over the past two qtrs, and in light of the recent 21% correction, believe share price reflects significant improvement in earnings. Expect earnings momentum to persist into 4Q11 and 2012, as emerging market urbanisation and economic growth remain strong in the face of overall inflation concerns.
CPO: CIMB has sector report. Note that the latest report card on regional planters reveals more outperformers than in the previous qtr as the output of planters with exposure to Indonesia was stronger than expected. Project better yoy 2Q11 earnings, spurred by higher ASPs and production…..
House retain CPO price and earnings forecasts for planters and is staying NEUTRAL on sector as qtrly earnings may peak in 2Q11 for some and expect CPO prices to drift lower in 2H11. Wilmar replaces Golden Agri as top pick in the region, in keeping with house view of weaker CPO prices in 2H11.
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