Traders React to Rumor Monsanto's 'Intacta' Soybeans Approved for Import by China, Analysts Respond

Shares of Monsanto

have remained sharply higher following an open nearly 5 percent higher at the start of trading Monday morning. Investors in the stock are responding to an upgrade from Neutral to Outperform by Macquarie and some positive comments from an analyst at Morgan Stanley. Citing a press release from Argentina's agriculture ministry, Morgan Stanley believes China has agreed to accept imports of Monsanto's Intacta strain of genetically modified soybeans. The analyst called this rumor of news "the single most important" item for Monsanto. Intacta could provide value at around $60 per acre, or approximately $2 in earnings per share starting in 2014 and extending through 2020. Morgan Stanley reiterated an Overweight rating and $125 price target on shares of Monsanto. The firm's "bull-case scenario" price target is at $145. Monday's move higher in Monsanto reprersents the largest intraday gain in the stock since January 5, 2012.