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Jefferies Upgrades Monsanto (MON) to Buy

May 25, 2016 6:40 AM EDT
Get Alerts MON Hot Sheet
Price: $10.07 --0%

Rating Summary:
    12 Buy, 13 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Jefferies upgraded Monsanto (NYSE: MON) from Hold to Buy with a price target of $132.00 (from $95.00).

Analyst Laurence Alexander commented, "Fundamentals starting to scrabble out of a trough, a determined suitor, increasing pressure on management to be proactive, and significant optionality suggest a favorable risk/reward, particularly relative to chemical companies facing compressing feedstock spreads and choppy end-markets. We upgrade Monsanto to Buy from Hold."

The analyst cited 5 positives:

Positive #1: Favorable weather

Positive #2: A favorable risk/reward. "Monsanto's response to Bayer (BAYN VX, Hold) was far from a full-throated defense: benign enough to open the door for more productive discussions. We believe a >$130 transaction is highly likely (Table 1), with details emerging by August. Without a deal, Monsanto would likely revert to ~$100."

Positive #3: Level of interest suggests glyphosate resistance manageable

Positive #4: Flexibility

Positive #5: Activism

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 $109.30 yesterday.



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