Buy Monsanto (MON) Given the Large Arb Spread - BMO

October 6, 2016 8:21 AM EDT
Get Alerts MON Hot Sheet
Price: $102.86 +0.36%

Rating Summary:
    20 Buy, 11 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 19 | New: 11
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BMO Capital analyst Joel Jackson is recommending investors buy Monsanto (NYSE: MON) given large merger spread/

Jackson commented, "F2017/18E (Aug) estimates lower ~5% following MON's FQ4 release. Though handicapping the Bayer/MON regulatory process remains complicated, we continue to see the asymmetrically positive risk/reward as compelling. The EU could rule on ChemChina/Syngenta in late October with an approval likely narrowing the currently wide 24% discount to MON's $128 takeout price. On a standalone basis, MON could have upside from current levels ($105-110/sh) assuming an ~18x ~$5.50-6.00 mid-term EPS run-rate plus the $2 billion reverse break fee. We continue to rate MON Outperform with a $128 target price."

The firm maintained an Outperform rating and price target of $128 on MON.

For an analyst ratings summary and ratings history on Monsanto click here. For more ratings news on Monsanto click here.

Shares of Monsanto closed at $103.18 yesterday.

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