Olam International

DBS VICKERS RESEARCH, Sept 1

FY14 core net profit was up 29 per cent y-o-y but missed both our and consensus estimates; 2.5 Singapore cents special DPS (dividend per share) was declared. Olam is on track to achieve FY16 gearing target and has completed 61 per cent of its cash realisation plans. Re-rating is expected to continue on the back of strong earnings growth and positive Free Cash Flow to Firm (FCFF) by end FY15. Upgrade to "buy" with target price raised to S$3.05.

BUY