CPO Looking Good, NS Acquisition Favorable

BB&T Capital Markets has reiterated its Buy rating on Corn Products International

after the company reported 3Q EPS results above expectations. In the report, BB&T writes "CPO reported Q3'10 EPS of $0.81 compared to our and the consensus estimate of $0.78. Net sales were roughly in line; however, gross margin was almost 20 bps ahead of our estimate. The company experienced strong volumes across all segments, particularly in A/A where it also realized improved pricing on a resurgence in its Korean business unit. NA sales missed our estimate but margins were better than expected due to improved utilization rates. SA sales were strong but earnings were light due to the region's lagged effect of co-product inflation. We expect this to improve during Q4." BB&T also maintains its $50 price target on Corn Products, which closed yesterday at $42.29.