Archer Daniels Midland (ADM -1.9%) is one of five grain processing companies initiated by Stephens analyst Ben Bienvenu, noting cyclical farm incomes are due for an uptick after five years of depressed levels.
ADM is started with an Overweight rating and $50 price target, as Bienvenu believes patient, value-oriented investors have a "solid entry point" at current levels into a company that pays a healthy dividend while new businesses mature and the company's "more normalized" earnings power returns.
Bunge (BG -1.5%) also is initiated at Overweight with a Street-high $74 price target, as Bienvenu sees shares at an attractive entry point for long-term investors with near-term downside protection and a favorable dividend.
The firm rates Ingredion (INGR -0.7%) at Overweight with a $97 target, expecting earnings will decline for the second year in a row, but the stock is trading at a discount to its fair value and earnings likely are nearing the bottom.
Andersons (ANDE -4.7%) is rated Equal Weight with a Street-low $21 price target, as challenges associated with business fundamentals and a lack of visibility into sustained improvement trends warrant a cautious view.
Finally, Green Plains (GPRE -3.8%) also is rated Equal Weight with a Street-low $12 target, citing a lack of visibility into improvement trends in ethanol fundamentals.
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