UPDATE: Bank of America Upgrades Archer Daniels Midland on Upside to Estimates Over Upcoming Quarters
In a report published Monday, Bank of America analyst Bryan D. Spillane upgraded the rating on Archer Daniels Midland Company (NYSE: ADM) from Underperform to Buy, and raised the price target from $36.00 to $44.00.
In the report, Bank of America noted, “We are upgrading ADM from Underperform to Buy as we see upside to estimates over the next few quarters due to the large US corn crop and strong Oilseed results benefitting from good oilseed crops globally. We also see the potential for further catalysts including the closing of the Graincorp acquisition which we believe could be $0.25 accretive on an annual basis, increased wheat exports from North America due to poor planting weather in the Black Sea region, favorable working capital and significant cash generation leading to increased share repurchases, as well as the potential sale of the Cocoa business. We note that the potential for a reduction in the ethanol mandate for 2014 poses the biggest risk to the story, however we believe it could take time for a resolution on the issue and that it could be manageable.”
Archer Daniels Midland Company closed on Friday at $38.02.
Latest Ratings for ADM
|May 2016||Credit Suisse||Maintains||Neutral|
|Apr 2016||Standpoint Research||Downgrades||Buy||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.