ADM (ADM) Downgraded as Corn, Soybean Will Have 'Ripple Effect' Across Value Chain

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Shares of Archer Daniels Midland (NYSE: ADM) have fallen about 3 percent Monday afternoon as an earlier downgrade from BMO Capital's Ken Zaslow continues to weigh on bulls.

Zaslow reduced his investment recommendation on ADM shares from Outperform to Market Perform and also reduced his price target from $36 to $32. The analyst cited "increased concern regarding the health of the corn (and soybean) crop may have a ripple effect across ADM's value chain." He also pointed to corn prices which will harm the company's ethanol unit should they continue higher. Moreover, "limited crops in storage prior to the harvest will not provide the typical offset from rising corn prices."

With Archer Daniels Midland shares last traded at $27.55, Zaslow's new price target still represents potential upside of about 16 percent.

Track all the market-moving analyst calls on shares of Archer Daniels Midland with our Analyst Ratings page.

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