UPDATE: Piper Jaffray Downgrades The Andersons to Neutral

Piper Jaffray lowers its rating on The Andersons

to Neutral from Overweight and lowers its price target by $10 to $45 a share on substantial earnings risks. Piper Jaffray says, "We are downgrading shares of ANDE to Neutral as we believe that Street expectations are likely to prove too optimistic in 1H12, which will limit valuation multiple expansion. We see the potential for three fundamental headwinds in 1H12: (1) tight basis in the grain handling segment; (2) depressed ethanol production margins; and (3) lower margins in the Plant Nutrient segment." ANDE closed at $43.32 a share yesterday.