Bank of America Merrill Lynch Underperform On Archer Daniels Midland Company
Bank of America Merrill Lynch is out with a research report on Archer Daniels Midland Company (NYSE: ADM) and it has an Underperform rating and $31 price target on shares.
In a note to clients, Bank of America Merrill Lynch writes, "In this report, we analyze the impact of rising corn prices on the Ag stocks – ADM, TSN and SFD. Overall, we view a smaller than expected crop and recent rise in corn prices as a negative for the Ag stocks. Grain processors (ADM and BG) will be challenged to pass through higher commodity costs in the face of weakening demand, and smaller crops will lower utilization rates across the supply chain. Protein processors (TSN and SFD) will face significantly higher feed costs next year due to tight corn supplies, particularly as favorable positions roll off, and there is a timing lag for production cuts to impact protein prices."
Shares of ADM lost 83 cents on Friday to close at $27.43, a loss of 2.94%.
