SINGAPORE (Nov 16): DBS Group Research is maintaining its “hold” recommendation for Olam International, as the stock is expected to trade within its range for the near term.
DBS’ analyst Mervin Song noted that the group’s small free float of 20% and its high gearing compared to other listed companies in Singapore would lead investors to continue to “shun the stock”.
Song has a price target of $1.94 for Olam, and added that Olam’s US$1.2billion acquisition of ADM Cocoa has yet to deliver consistent positive free cash flow and earnings growth.
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