Monsanto downgraded at Monness Crespi after gloomy seed dealer survey


Monsanto (MON +0.1%) is downgraded to Neutral from Buy with a $127 target price, down from $140, at Monness Crespi, whose annual seed dealer survey came back the most negative for the seed industry in the survey's seven-year history.

The firm says the 50-plus dealers who responded are seeing challenging industry conditions - including greater discounting, reduced trait purchases, reduced spending on seeds, and share gains for non-major seeds brands - as a second straight year of significantly lower farm profits forces farmers to watch their spending closely, including on seeds.

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Comments (4)
  • buysideanalyst14
    , contributor
    Comments (79) | Send Message
     
    I think what the analyst is missing is that if the market has decided to give DE a pass this year after putting absolutely terrible FY15 guidance, why should MON not get the same pass. DE put up FY15 guidance well south of both consensus and even buyside numbers, but the stock went up because DE thinks this FY15 are trough numbers. Should be the same for MON too.
    2 Dec 2014, 06:25 PM Reply Like
  • bcnfarms
    , contributor
    Comments (2) | Send Message
     
    The difference is that DE has taken steps early on to trim cost and tighten up the the production cycle. They have laid off employees and are working to avoid a disaster. MON on the other hand has had their heads in the sand not wanting to recognize that farmers are tightening spending and not willing to pay the price for the seeds that MON demands from their seed.
    3 Dec 2014, 11:01 PM Reply Like
  • shirleylumsden
    , contributor
    Comment (1) | Send Message
     
    MON has not only had their head in the sand. They have continued to operate with arrogance. The results are biting them where it hurts.
    9 Dec 2014, 07:58 AM Reply Like
  • Judy Swink
    , contributor
    Comments (86) | Send Message
     
    You might want to consider the effects Monsanto has on the condition of human health on the planet. They make money on GM seeds and pesticides that are causing enormous harm to humans. My grandson Chandler Swink, 19, was buried on Monday, cause of death was severe level 6 peanut allergy, he ate a cross contaminated cookie. Natalie Giorgi, 13, died last year, same thing, Jaime Mendoza, 16, died this Thanksgiving day, same thing. Hundreds were at Chan's funeral, so many saying their loved one has the same allergy. This has to be exposed, the harm to humans is not being told. GMO must stop!
    4 Dec 2014, 07:54 AM Reply Like
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