UPDATE: BMO Says Archer Daniels Midland is the Surprise Investment of 2012; Upgrades to Outperform and Increases PT

According to a research report published today, BMO Capital Markets claims Archer Daniels Midland's

recent stock underperformance creates an attractive entry point to capitalize on recovery, and therefore BMO has upgraded ADM's rating to Outperform. In the report, BMO said, “First, despite near-term challenges, ADM's outlook should vastly improve after the spring, as business fundamentals should reset (i.e., new crop, dislocation, progress on E-15, increased protein production). Second, ADM has become a better steward of capital, as evidenced by 1) greater focus on logistics; 2) willingness to exit underperforming projects (e.g., green plastics); and 3) the wherewithal to reduce headcount. Third, despite weak fundamentals in F2Q12, it is notable that 1) ag services generated profits within the “normal” range; 2) cocoa incurred a $127 million MTM loss that will be recovered; and 3) HFCS recovered more quickly than expected.” BMO increases PT to $35 on Archer Daniels Midland, which closed yesterday at $28.63.