Morgan Stanley Maintains Overweight, $37 PT on Archer Daniels Midland

Morgan Stanley reiterates its Overweight rating and $37 price target on Archer Daniels Midland (NYSE: ADM) as it focuses on the company's deployment of capital.

Morgan Stanley says, “While little can be done about the allocation of ADM's ~$4B of growth CapEx from F07-F10, we expect improvement in ADM's go-forward capital allocation process. CapEx concerns are likely part of ADM's depressed multiple and any improvement in ROIC sentiment will likely aid ADM's multiple.”

ADM closed at $28.34 per share on Monday.