- Monsanto (MON -1.9%) moves lower, slipping nearly 20% below Bayer's (OTCPK:BAYRY -1.8%) $128/share offer price, amid doubts about the limited business overlap, potentially lowballed terms and significant closure risk.
- CLSA downgrades MON Underperform with a $110 price target, citing disappointing deal terms and a far higher regulatory risk than both management teams suggest; the firm also notes that the offer price is less than 10% higher than where the stock traded two years ago, and says the $2B breakup free is a "fraction" of what MON offered in its pursuit of Syngenta.
- Piper Jaffray keeps its Overweight rating on MON while lifting its price target to the $128 offer price, which it says was lower than expected; the firm pins its approval conviction on the "minimal crossover" between the two companies, while admitting that MON's remarks about Bayer as the best option for shareholders raises doubt about the company's growth expectations.
- BMO keeps his Outperform rating and lifts its target to $128, echoing that product overlaps are small and that the deal will be closely scrutinized across the globe given the practical realities of farmer wallet impact, the companies involved, and ongoing reviews of the Dow-DuPont and ChemChina-Syngenta tie-ups, adding that MON could trade sideways for weeks or even months.