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Why One Expert Thinks Deal For 'Struggling' Monsanto Makes Sense

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Why One Expert Thinks Deal For 'Struggling' Monsanto Makes Sense
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Monsanto Company (NYSE: MON) shares were extremely volatile Thursday morning as investors digested multiple reports the company could see some kind of takeover interest. About an hour before the opening bell, the stock traded up nearly 14 percent to just under $103.

While some are skeptical about the likelihood of such a massive deal (see comments from Citi's PJ Juvekar made Thursday morning), at least one industry expert didn't disregard the chatter.

Related Link: Citi Analyst Shows Skepticism Monsanto Could Be Purchased by BASF, Sees 'Low Probability Event'

"Someone wanting to buy all or a piece of Monsanto would make sense," Angie Setzer, VP of Grain for Citizens, told Benzinga. "[Monsanto] has been struggling in market development/market share, their reputation is somewhat less than perfect and they have extraordinary value. I could definitely see someone making a play for a piece of their company. It would likely be a very expensive endeavor, but to be honest...it would be one that would likely pay off big time in the end."

Setzer further pointed to recent large-scale deals between DuPont/Dow and Syngenta/ChemChina.

"[These have left] Monsanto and others to try and do what they can to tie up major amounts of market share and grow with or outpace their competition," she said.

Shares traded recently at $101.29, up about 12 percent in the pre-market session.

Latest Ratings for MON

DateFirmActionFromTo
Apr 2018ArgusDowngradesBuySell
Apr 2018BMO CapitalDowngradesOutperformMarket Perform
Oct 2017Wells FargoMaintainsMarket Perform

View More Analyst Ratings for MON
View the Latest Analyst Ratings

Posted-In: Angie SetzerAnalyst Color News M&A Exclusives Analyst Ratings Movers Best of Benzinga

 

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