Singapore Stock Market News

Olam International - Challenges continue to bite

StockFanatic
Publish date: Sat, 18 May 2013, 01:51 PM
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Olam's 9MFY6/13 profits would have missed expectations had we not lowered our forecast recently. Olam's profits remain vulnerable to challenges. Its industrial raw materials segment is recovering but the confectionery & beverage segment threatens to slip into difficult times.

9M13 core net profits met our lowered expectations, coming in at 73% of our FY13 estimate and 74% of consensus. We keep our EPS forecasts, target price (based on 1x CY13 NAV) and Underperform rating, with earnings disappointment being a de-rating catalyst.
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