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UPDATE: Stifel Initiates Coverage on The Andersons

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The Andersons Expands Michigan Ethanol Facility
Earnings Scheduled For November 4, 2015

In a report published Friday, Stifel analyst Paul Massoud initiated coverage on The Andersons (NASDAQ: ANDE) at Hold.

According to the report, while it is believed that ANDE is entering into a favorable operating environment in 2014, much of the upside is already valued in the stock (up 107.9% in 2013 vs. the S&P 500 which was up 29.6%). “We expect a large crop output from the 2013/2014 U.S. planting season to improve revenue and margins in ANDE's grain handling business,” the report noted. “The USDA estimates U.S. corn production of 14.0 billion bushels, up 29.8% y/y, and soybean production of 3.3 billion bushels, up 7.4% y/y. As a result of the large harvest, we estimate 2014 revenue from ANDE's Grain segment will increase 5.0% y/y to $3.7 billion and EBT margin will improve from 1.6% in 2013 to 3.0% in 2014.”

The report further asserted that ANDE shares currently trade at 9.6x their 2013 EBITDA estimate versus a normalized range of 6.1x-10.2x for Street consensus current year estimates (one standard deviation from the mean of 8.1x).

ANDE closed Thursday at $87.67.

Latest Ratings for ANDE

DateFirmActionFromTo
Oct 2015Buckingham ResearchInitiates Coverage onNeutral
Jul 2015Vertical ResearchInitiates Coverage onBuy
Jan 2015BMO CapitalDowngradesOutperformMarket Perform

View More Analyst Ratings for ANDE
View the Latest Analyst Ratings

Posted-In: Paul Massoud StifelAnalyst Color Initiation Analyst Ratings

 

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