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Goldman Sachs Adds Syngenta (SYT) to Conviction Buy List

July 2, 2013 9:29 AM EDT Send to a Friend
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Price: $61.78 -2.51%

Rating Summary:
    6 Buy, 9 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 6
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Goldman Sachs upgraded Syngenta (NYSE: SYT) from Buy to Conviction Buy. Analyst Rakesh Patel thinks concerns about a delayed U.S. planting season are overdone, and he noted a number of long-term growth drives.

"As the world's leading provider of crop protection and seeds, it is exposed to demand from all of our megatrends. Its supply-side industry structure is also relatively attractive, being consolidated with some barriers to entry," said Patel.

"We see three reasons to buy the shares now: (1) Despite our weak Ag commodity forecasts, we believe Syngenta can decouple from the ag cycle by virtue of its Integrated Strategy which will allow farmers to increase yield despite lower crop prices, keeping farmer profitability robust. (2) Long-term fundamentals remain strong, with farmers needing to grow more with less acreage. (3) The unlevered balance sheet leaves scope to use +US$4 bn on bolt-on acquisitions/shareholder returns," concluded the analyst.

For an analyst ratings summary and ratings history on Syngenta (NYSE: SYT) click here. For more ratings news on Syngenta click here.

Shares of Syngenta closed at $77.71 yesterday.




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Goldman Sachs Conviction Buy List, Goldman Sachs

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