UPDATE: J.P. Morgan Upgrades Archer Daniels Midland Company to Neutral, Raises PT on Multiple Risk Factors

In a report published Friday, J.P. Morgan analyst Ann Duignan upgraded the rating on

from Underweight to Neutral, and raised the price target from $29.00 to $33.00. In the report, J.P. Morgan noted, “Overall, our Neutral rating (from Underweight) reflects the variety of risks and opportunities facing ADM, including: (1) volume and margin opportunities given what could be record 2013/14 U.S. corn and soybean crops, after a challenging Q2'13; (2) potential working capital improvements given declining crop prices in H2'13; (3) the GrainCorp acquisition could result in higher earnings volatility; and (4) potential reduction of the U.S. Renewable Fuel Standards (RFS), coupled with increased imports of sugarcane ethanol, could result in lower-than-expected domestic ethanol production next year.” Archer Daniels Midland Company closed on Thursday at $35.79.