RCS - Obtala Limited - Beaufort Securities initiates coverage <Origin Href="QuoteRef">OBT.L</Origin>

WoodboisAnnouncement

09/10/2017 10:06

RNS Number : 0541T
Obtala Limited
09 October 2017
9 October 2017 
Obtala Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Beaufort Securities initiates coverage on Obtala with 37.5p target price
WoodBois acquisition 'perfect timing' to position Obtala to benefit from 'super-cycle' in timber 
Research analysts Beaufort Securities today issued their inaugural research of Obtala Limited (OBT.L), the Sub-Saharan Agriculture and Forestry Group, and the first independent analysis of the company's outlook following the business restructuring and interim results posted at the end of September. 
Targeting a share price of 37.5p, more than double the current levels, Beaufort said their 'speculative buy' recommendation was supported by the immediate access to production, trading and distribution gained from the acquisition of WoodBois International ApS in May 2017, the strength of the fundamentals in agriculture and forestry, as well as the transformational changes implemented over the past year. Beaufort further highlighted the planned increase to $25m of WoodBois' credit facilities for its global trading division as a key driver of revenues going forward. 
Explaining the headline of the report, Beaufort said the 'marriage made in heaven' combined the management strength and proven access to capital of Obtala with the benefit of WoodBois' global forestry product distribution channel, positioning the new Group to profit from intense international demand for timber, as well as a possible 'super cycle' forged by the removal of illegal loggers from the market.
The full Beaufort Securities Analysis of Obtala Limited is available here: https://www.beaufortsecurities.com/shp/research.php?vid=436
It is also available for download on our website under the Investors section at www.obtala.com/investors-research-coverage
Obtala Limited
Miles Pelham - Chairman
Paul Dolan - CEO
Martin Collins - Deputy Chairman
www.obtala.com
+44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad)
John Treacy
+44 (0)20 7060 2220
Brandon Hill Capital (Joint Broker)
Jonathan Evans
+44 (0)20 3463 5000
Beaufort Securities Limited (Joint Broker)
Jon Belliss
+44 (0)20 7382 8300
This announcement contains information which was previously inside information forthe purposes of Article 7 of the Market Abuse Regulation EU Regulation 596/2014.

This information is provided by RNS
The company news service from the London Stock Exchange
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