DA Davidson Starts Corn Products (CPO) at Buy; Very Different Today: Surprisingly Stable & Consistent Growth

DA Davidson initiates coverage on Corn Products (NYSE: CPO) with a Buy. PT $70.00.

Analyst, Timothy S. Ramey, said, "When Corn Products was spun-off from CPC International 14 years ago, it could only be understood in the context of corn, and really only in the context of other companies like Archer Daniels Midland (NYSE: ADM) and Bunge (NYSE: BG). As a group, these companies made big bets in trading and capital allocation; high-stakes poker was the analogy for the all-important annual High-Fructose Corn Syrup negotiations. They were manufacturing businesses with low returns and extreme EPS volatility...It’s our view that over time CPO will be viewed in its context of growth and innovation rather than a capital-driven commodity processor, which will be good for valuation."

Ramey initiates FY12/13 EPS estimate at $5.20/5.65

For an analyst ratings summary and ratings history on Corn Products click here. For more ratings news on Corn Products click here.

Shares of Corn Products closed at $57.23 yesterday.

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