Exotix Capital initiates coverage on Wilmar with 'sell' call
It cites the stock's faltering returns and poor earnings growth amid supply glut
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Singapore
EXOTIX Capital has initiated coverage on agribusiness group Wilmar International with a "sell" call, saying the stock is currently trading at an "unwarranted" 36 per cent premium to the sector average "in light of its faltering returns and poor earnings growth".
Head of consumer research Nirgunan Tiruchelvam said the market is not factoring in risks as Wilmar shares are trading at about 14 times enterprise value to Ebitda (earnings before interest, tax, depreciation and amortisation) for 2018.
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