Standpoint Research Downgrades Archer Daniels Midland (ADM) to Hold: Taking A Step Back

Standpoint Research downgraded Archer Daniels Midland (NYSE: ADM) from Buy to Hold.

Analyst, Ronnie Moas, said, "We still see value in ADM and expect the stock to take out its 52-week high of $37 next year...We can no longer leave our highest recommendation attached to this name given the recent move and the difficulty in forecasting earnings going forward...The shares still look attractive at 11X, but again, that low multiple is because the market can’t have confidence in earnings forecasts going forward because the weather, commodities prices and expenses tied to the ADM business are so volatile...The company is still seeing pressured margins in the ethanol and oilseeds segment and some other issues (offset by some positives)."

For an analyst ratings summary and ratings history on Archer Daniels Midland click here. For more ratings news on Archer Daniels Midland click here.

Shares of Archer Daniels Midland closed at $30.83 yesterday.

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