ADM Again Has Share Repurchase Option

Analysts at Deutsche Bank reiterate their "buy" rating on Archer-Daniels-Midland

. The target price for ADM is set to $34. According to Deutsche Bank, “ADM again has share repurchase option. As ADM is in a quiet period until its F4Q report on Aug 1st, share repo will be evaluated then…On ethanol, the EPA has indicated a blend rate decision will be made by ‘late summer.’ In our view, an E11or E12 decision applicable to all vehicles would be preferable to an E15, which bifurcate the vehicle fleet.” “Ag Services trends appear to be muted despite new trade patterns – soybean oil and corn to China. The impact of the latter is predicated on China's new crop conditions (i.e. weather), though recent reserve drawdowns will need to be replaced….With fundamentals mixed, we see near-term catalysts as potential share repo + a higher blend rate decision. A large corn crop and continued corn purchases by China would provide additional upside,” the analysts mention.

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