UPDATE: Citigroup Downgrades Ingredion to Neutral, Lowers PT

In a report published Wednesday, Citigroup downgraded its rating on Ingredion

from Buy to Neutral, and lowered its price target from $86.00 to $77.00. Citigroup noted, “We believe Ingredion is a very well run company with management receiving high marks for the acquisition of the National Starch assets and its ability in growing the core business. However, we simply believe that the commodity markets have turned against the company, with the unprecedented US drought combining with a massive decline in sugar prices to create headwinds for the company. Given the sound structure of the North American corn sweetener industry, we believe that the environment for Ingredion could become more favorable with a big U.S. corn crop, although this event is 9-10 months away, with weather over the growing season once again remaining a key wildcard.” Ingredion closed on Tuesday at $66.75.