- Monsanto (NYSE:MON) finished +8.5% today after dropping its bid for Syngenta, and Citigroup maintains its Buy rating on the stock as management "showed discipline" by ending the process.
- With the offer now off the table, MON said it plans to resume repurchasing its own shares, and Citi says the commitment to return capital to shareholders could alleviate fears that MON will quickly undertake another major transaction; MON has ~$4B remaining on its two-year, $10B share repurchase program announced in mid-2014.
- Although the macro ag backdrop is challenging with farm incomes falling and low grain prices, Citi says MON remains "well positioned as the strongest seed company with the best R&D pipeline in the industry."