Gabelli Starts American Vanguard Corp. (AVD) at Buy, Says Ag Fundamentals are Attractive

Gabelli initiates coverage on American Vanguard Corp. (NYSE: AVD) with a Buy and $43 2013 PMV.

The firm comments: "Agriculture fundamentals are attractive, with corn prices reaching all-time highs of $8.49 per bushel and the USDA forecasting prices to stay at historically high levels between $7.50-8.90... With the global population growing at 1.1% annually (between 1.4-2.2% in developing countries) demand for protein will increase, causing higher feed grain consumption to have a multiplier effect on crop needs. These dynamics will drive long-term earnings as global farming techniques shift towards higher GMO seed utilization and resistance issues become more predominant... AVD trades at 10.6x 2013E EBITDA and 21.1x 2013E EPS. The stock trades at a 19.7% discount to our 2013 PMV of $43"

For an analyst ratings summary and ratings history on American Vanguard Corp. click here. For more ratings news on American Vanguard Corp. click here.

Shares of American Vanguard Corp. closed at $34.80 yesterday.

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