Olam

Olam: CS maintains Outperform with TP$3.85.

At the 2008-09 lows, consumer staples was the best performing sector,
outperforming MSCI Spore by 30% over the nxt 6 mths. It was also best performing sector (together with Industrials) since the 5 Oct lows.Continue to favour Olam, with its business model largely resilient against both economic and commodity cycles.

Near-term catalysts include financial closure and award of turnkey contract for its US$1.3b Gabon fertilizer project, and further, the announcement of more earnings-accretive deals.

Olam still trades at 1 std dev below its historical avg P/E multiple, and at close to 2008-09 P/B lows.