Loading...
Loading...
In a report published Wednesday, Topeka Capital Markets analyst Chris Kapsch reiterated a Buy rating on Monsanto Company
MON, and raised the price target from $113.50 to $120.50.
In the report, Kapsch noted, “The cross-licensing deal announced between DuPont and Monsanto is a meaningful positive for MON, increasing the likelihood that domestic soy farmers inevitably and ubiquitously adopt MON's next gen Roundup Ready to Yield (RR2Y) technology for soybeans. The deal also adds incremental earnings (via royalties, starting FY14) that may not have come through had DuPont endeavored to compete exclusively using first generation Roundup Ready (RR) trait technology, which comes off patent next year. Further, with DuPont embracing RR2Y, there is diminished risk the RR soy market comes under generic-based pricing pressure. We are increasing our FY14 EPS estimate to reflect the incremental royalties and our target price to reflect diminished risks that may have otherwise dragged on MON's multiple. We continue to use any volatility into/through March 28th (when the USDA crop planting intentions report is released) as an opportunity to buy MON.”
Monsanto Company closed on Tuesday at $103.79.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in