UPDATE: Bank Of America Reinstates Coverage On Archer Daniels Midland On Solid Near-Term Earnings Visibility

In a report published Tuesday, Bank of America analyst Evan Morris reinstated coverage on

with a Buy rating and $58.00 price target. In the report, Bank of America noted, “We believe a combination of short-term tailwinds and longer-term structural initiatives should result in continued positive earnings momentum for Archer Daniels Midland (ADM). Even though some of the near-term favorable industry dynamics are understood, in our view they are not fully reflected in the stock. Even with the increase in the stock price following earnings, we still see around 15% upside potential to our price objective, which represents 14x our 2016 EPS estimate and 8.5x our EBITDA estimate.” Archer Daniels Midland closed on Monday at $50.77.