UPDATE: Goldman Sachs Reiterates Buy Rating, Raises PT on Monsanto Company
In a report published Wednesday, the Goldman Sachs Group reiterated its Buy rating on Monsanto Company (NYSE: MON), and raised its price target from $96.00 to $100.00.
Goldman Sachs noted, “We heard a positive outlook on the first day of MON's bi-annual Whistle Stop tour in Illinois. We also met with major independent seed producers. Near-term: (1) Rootworm resistance remains a hot topic and MON notes ~400 fields with 2011 resistance issues were resolved with remedial action; 2012 incidences are fewer at ~150 fields; (2) MON's seed supply looks relatively unaffected by the drought due to diversified and irrigated production; (3) Seed pricing will be up 5%-10% again in 2013; (4) RR2 soy and reduced refuge corn made solid progress in 2012, with similar growth (10mn-13mn acres) expected in 2013; and (5) MON notes 75% of farmers expect similar or better profits in 2012 as price gains offset reduced yields.”
Monsanto Company closed on Tuesday at $86.20.
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