CLSA upgrades Wilmar International (F34.SG) to Outperform from Sell, and raises its target price to $5.80 from $4.70 as the house believes inflation in China has likely peaked and the company’s recent investments provide assurance that it remains focused on its agri business.
“The decreasing likelihood of runaway inflation is positive for Wilmar as it reduces the risk of regulatory intervention,” CLSA says.
The house also says that Wilmar management bought $22.1 million worth of shares in February, signaling belief in better prospects. Wilmar is up 1.4% at $5.07.
