Okomu Oil Palm Plc of Nigeria rose to the highest level in almost 11 weeks after Asset and Resource Management Co. started coverage of the stock with a buy recommendation.
The shares gained 4.7 percent to 36.65 naira by the close in Lagos, Nigeria’s commercial capital, the highest since Oct. 3. About 2.1 million shares, more than nine times the three-month moving average, changed hands, according to data compiled by Bloomberg.
Okomu will have 22 percent annual revenue growth from 2013 to 2016 “on the back of strong domestic and industrial demand for palm oil and the increased competitiveness of its natural rubber exports,” ARM forecast in a note to clients yesterday. It gave a target price of 48.46 naira for the stock.
Okomu will raise output of palm oil from 30 tons an hour to 60 tons from 2013, Chairman Gbenga Oyebode said in an interview on Dec. 14.
The shares have risen 59 percent this year, compared with 32 percent for the Nigerian Stock Exchange All-Share Index.