UBS Optimistic On Monsanto Deal, Raises Price Target To Match Bayer Bid

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United Bank of Switzerland's John Roberts reiterated
Monsanto CompanyMON
at Buy while increasing the price target from $97.00 to $122, expecting
Bayer AG (ADR)BAYRY
to buy Monsanto shares at that price.

"Given that both parties seem open to constructive talks, we're raising our PT to be in line with the current bid price from Bayer," said Roberts. The analyst was confident in the high value of leading positions in seeds and pesticides and thought Bayer could easily propose a higher price than $122, especially if Monsanto agreed to provide more data.

Related Link: Piper Jaffray Raises Monsanto Target To $127 On Buyout Talks

So far, Bayer has offered Monsanto $122 a share, but Monsanto declined the offer. Although they both claim to be open to continued talks, Bayer management said they wouldn't be willing to increase their bid price until Monsanto gives more visibility of their business, which they have not done yet.

At the time of writing, Monsanto traded at $106.75, down 0.28 percent.

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Posted In: Analyst ColorLong IdeasPrice TargetReiterationM&AAnalyst RatingsTrading IdeasJohn RobertsUnited Bank of Switzerland
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