BofA Securities Downgrades Adecoagro (AGRO) to Underperform

BofA Securities analyst Isabella Simonato downgraded Adecoagro (NYSE: AGRO) from Neutral to Underperform with a price target of $10.80 (from $12.00).

The analyst commented, "We downgrade Adecoagro to Underperform from Neutral with a US$10.8/share PO (from US$12), as we increase our WACC to 15.2% from 13.7%, given a higher Beta at 2.0 (from 1.6) to reflect the risk of lower liquidity of the shares (float now of 30%, ~US$300mn) and uncertainty regarding the long-term strategy of Tether Investments as the controlling shareholder of the company. Tether plans to maintain Adecoagro’s main executives and business structure, which reduces the risk of disruptive changes in the company, in our view; however, Tether’s core business volatility could ultimately impact their position at Adecoagro at some point in time."

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

Shares of Adecoagro closed at $11.69 yesterday.

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