Seeking Alpha

Monsanto upgraded to Buy at Miller Tabak on upside surprise potential

  • Monsanto (MON +1.2%) is upgraded to Buy from Hold with a $130 price target, up from $106, at Miller Tabak, noting that the Street is bracing for limited-to-no upside to FY 2014 guidance because of uncertainty over the impact of tightening credit on Ukrainian seed volumes going forward and Brazilian weather impact on Intacta supply availability for next season.
  • The firm sees a positive shift in underlying agriculture macro trends enabling MON to bridge the earnings hurdle between recent multi-year highs, Roundup margins, strong seed prices and the next burst of material margin uplift from Intacta and IFS products in FY 2016.
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Comments (4)
  • a_partlow
    , contributor
    Comments (32) | Send Message
     
    Falling corn prices will hurt Monsanto.
    28 Mar 2014, 09:16 PM Reply Like
  • ajkmsteph2
    , contributor
    Comments (20) | Send Message
     
    Seed is made mainly with irrigation so drought doesn't affect production as much. It can increase the cost of production in that with drought grain prices go up and Monsanto has to pay the growers more to produce the seed. Seed will probably not be in any shorter supply. Farmers may have loess money to buy but I bet Monsanto will work out a financing scheme if necessary as the farmer can pay in grain at harvest time. The intact increases yields so much especially when there are more insects around in a drought that they they buy everything up
    30 Mar 2014, 09:06 PM Reply Like
  • ajkmsteph2
    , contributor
    Comments (20) | Send Message
     
    Also corn prices will increase if Ukraine can't plant. Corn prices will rise through this year. There will be plenty of EU credit for farmers to plant main question is who will harvest Ukraine or Russian troops
    30 Mar 2014, 09:06 PM Reply Like
  • a_partlow
    , contributor
    Comments (32) | Send Message
     
    Still think it's going up?
    9 Feb, 10:02 AM Reply Like
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