Reuters) - Wilmar International, the world''s largest listed palm oil trader, rose as much as 2.6 percent to hit a one-week high on news that it will buy an edible oil business of Unilever in Africa. TheAnglo-Dutch consumer goods group said on Thursday that it has agreed to sell its edible oil business in the Ivory Coast to SIFCA and a 50:50 joint venture between SIFCA and two Singapore-based companies, Wilmar International and Olam International .
Credit Suisse and Goldman Sachs also issued bullish research reports on the Asian palm oil sector, helping Wilmar jump to S$5.22, with over 2 million shares changing hands. In its report, Goldman Sachshighlighted Wilmar as one of its top picks for its strong long-term growth potential, saying palm oil prices could rise further. "Current crude palm oil prices are ndervalued relative to crude oil and soybean oil," the bank said. CreditSuisse noted that exports of malaysian palm oil to the U.S. have increased significantly since the trans-fat labelling legislation in 2004, and that it remains bullish on palm oil prices.
"Wilmar should be a core holding for long-term investors a it offers high-quality, high-growth exposure to the palm oil sector given market leadership in its downstream businesses and strong organic growth potential," said Goldman Sachs which has a "buy" rating on Wilmar with a target price of S$6 a share.
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