Morgan Stanley Reiterates Overweight on Monsanto Company Following F1Q14 Results
In a report published Thursday, Morgan Stanley analyst Vincent Andrews reiterated Overweight and $150.00 price target on Monsanto Company (NYSE: MON).
According to the report, analysts continue to see seed COGS tailwinds as the key F14 EPS upside driver, with the payoff beginning in F2Q. Improved sentiment on seed demand and pricing should boost valuation in the meantime. Intacta performance in Brazil should provide upside throughout the middle of the year.
“Monsanto's F1Q performance was solid against a demanding comp in corn, increased R&D and SG&A expense due to the The Climate Corporation acquisition, further write-offs in Fruits & Vegetables, and a cotton acreage headwind,” the report said. “We have increased comfort that Monsanto will achieve at least the low end of its price/mix guidance. Importantly, the just released 10Q indicates seeds price/mix +10% in F1Q14 despite volume -11% (lower planted corn acreage in Brazil).”
Key value drivers from the report include: -Intacta in Brazil & Argentina -SmartStax, Double/Triple Pro & RoundupReady2Yield in the US; Double and Triple Stack in LatAm. -Market share / competitive landscape -R&D / SG&A Leverage
MON closed Wednesday at $115.23 with shares trading up at 2.15 percent.
Latest Ratings for MON
|Mar 2015||Barclays||Initiates Coverage on||Equal-weight|
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