Wilmar (F34.SG) was trading as high as $6.03, above $6.00 for first time in 2 weeks, on follow-through buying as investors remain upbeat on plantation group’s venture into fast-growing sugar business via A$1.75 billion ($2.06 billion) purchase of Sucrogen, Australia’s largest producer of raw sugar, according to Dow Jones.

“While Wilmar will be able to open up new export markets like China for Sucrogen’s production, we think the key synergy in this deal lies in Indonesia,” where sugar demand is strong, says Morgan Stanley, which has Overweight call with $7.80 target. Wilmar had initially planned to venture into sugar trade by penetrating Indonesian market.

“Wilmar’s Indonesian sugar project has now been jump-started, with Sucrogen managers, who are already familiar with the area, relocating to Indonesia to evaluate land assets on offer,” house says.

Resistance at higher end of $5.90–$6.18 breakdown gap formed in May.

Shares up 0.8% at $6.00.