UPDATE: Citigroup Downgrades Archer-Daniels-Midland Company to Neutral on Rising Corn Prices
Citigroup reduces its rating on Archer-Daniels-Midland Company (NYSE: ADM) from Buy to Neutral and reduces its price target from $38 to $32.
Citigroup says, "We are reducing our estimates (see below), price target to $32 (-$6), and rating on ADM shares to Neutral. Our analysis indicates that the 2012 US corn crop is in significant danger due to the emergence of drought conditions not seen since 1988. This is leading to higher corn prices, which are raising the cost structure of an already struggling ethanol industry and presenting ADM with significant earnings headwinds."
ADM closed at $29.52 on Friday.
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