Deutsche Bank Upgrades Corn Products (CPO) to Buy; See Earnings Momentum Continuing
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Price: $50.05 --0%
Rating Summary:
8 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank upgraded Corn Products (NYSE: CPO) to Buy. PPT $62.
Deutsche analyst says, "Though corn costs may get tougher in 2H, we see earnings momentum continuing, with stronger margins and capacity utilization. Legacy CPO is seeing better supply/demand processing fundamentals on corn with US tighter, management is passing through pricing to offset higher corn costs, and driving better mix. In terms of demand, we estimate HFCS still trading at approximate 45% discount to sugar in the U.S., and about 30% in Mexico. Finally, FX remains a tailwind to EPS, expected at +$0.17-0.20 this year. Looking to next year, we expect current tightness in sweetener market (with reports of spot shortages) to aid negotiations this fall for 2012 contracts."
For more ratings news on Corn Products click here and for the rating history of Corn Products click here.
Shares of Corn Products closed at $53.65 yesterday.
Deutsche analyst says, "Though corn costs may get tougher in 2H, we see earnings momentum continuing, with stronger margins and capacity utilization. Legacy CPO is seeing better supply/demand processing fundamentals on corn with US tighter, management is passing through pricing to offset higher corn costs, and driving better mix. In terms of demand, we estimate HFCS still trading at approximate 45% discount to sugar in the U.S., and about 30% in Mexico. Finally, FX remains a tailwind to EPS, expected at +$0.17-0.20 this year. Looking to next year, we expect current tightness in sweetener market (with reports of spot shortages) to aid negotiations this fall for 2012 contracts."
For more ratings news on Corn Products click here and for the rating history of Corn Products click here.
Shares of Corn Products closed at $53.65 yesterday.
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