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Piper Jaffray Maintains a 'Buy' Rating on The Andersons (ANDE); Raises Price Target After Meeting With Mgmt

June 17, 2009 9:45 AM EDT
ANDE Hot Sheet
Rating Summary:
    3 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Piper Jaffray & Co. maintains a 'Buy' rating on The Andersons (Nasdaq: ANDE). Price target increased from $29 to $36.

Piper analyst says, "After spending the past 2 days with ANDE management, we are incrementally more confident in our Buy rating on ANDE shares...Concerns around rail segment weakness are overblown. Rail car shipments have fallen significantly this year due to the weak economy (the latest data from the American Association of Railroads indicates that North American rail volume is down 20.2% so far this year). This weakness has caused utilization rates in ANDE's rail fleet to decline. We now expect the Rail segment to lose about $1.2m in 2009. While these developments are clearly a negative for the Andersons, we believe that widely-circulated concerns around the Rail segment are overblown. Strong trends in fertilizer and grain segments support growth. We believe that fundamental drivers in ANDE's fertilizer and grain segments are aligning to support growth that will more than offset weakness in the Rail segment."

To see more analyst ratings on ANDE Click Here.

The Andersons, Inc. is an entrepreneurial company with diversified interests in the agriculture and transportation markets.

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