Daiwa raises Olam International’s (O32.SG) target price to $3.52 from $2.94 due to higher peer multiples, keeps Buy call.

Daiwa says 1Q (slow season) results were inline financially, operationally, with house, consensus forecasts, management guidance. In addition, Olam is “on plan” with strategy to expand adjusted net profit at CAGR of 25% for FY09-FY15. Notes “the 1Q FY10 numbers were ‘clean’, without disappointments or distorting one-off items.”

Research house adds, management says business not currently affected adversely by increased commodity prices, any physical commodity scarcity. Says “we like Olam for what we see as its strong management, well-run business model, and predictable net-profit growth.”

But still, Daiwa favours Noble Group (N21.SG), rated Buy, over next 6 months due to more attractive 2011 P/E, faster adjusted on-year net-profit growth based on 2011 forecast. Olam last off 1.5% at $3.28.