BMO Capital Markets Downgrades Archer Daniels Midland to “Market Perform” (ADM)
Analyts at BMO Capital Markets downgraded agricultural giant Archer Daniels Midland Company (ADM) on Tuesday as near term upside is limited.
The analysts downgraded ADM from “Outperform” to “Market Perform” and maintained a price target of $32. This target suggests almost no upside to Monday’s closing price of $31.70.
A BMO Capital Markets analyst noted, “We are downgrading ADM to Market Perform. Our view that ADM has enhanced its earnings power through structural internal improvements and better capital allocation remains entirely unchanged. However, we believe the near-term stock upside remains limited, as ADM’s stock price better reflects its earnings power and the US corn crop outlook is uncertain. ADM is trading at 11x consensus 2014 EPS relative to forward 12-month P/E of 9x in late July as ADM’s stock outperformed the S&P by 1,700 basis points over that time.”
Archer Daniels Midland shares were down a fraction during pre-market trading on Tuesday. The stock is down slightly over the past twelve months.
The Bottom Line
Shares of Archer Daniels Midland (ADM) have a dividend yield of 2.40% based on last night’s closing price of $31.70 and the company’s annualized dividend payout of 76 cents per share.
Archer Daniels Midland Company (ADM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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