Citigroup Lowers Estimates for Archer Daniels Midland amid Ethanol Fears (ADM)


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Food products maker Archer Daniels Midland Company ( ADM ) on Wednesday received some tepid commentary from analysts at Citigroup.

The firm lowered its earnings estimates for the company through 2013, citing ongoing issues in ethanol markets. The soaring cost of corn amid the summer drought in the midwestern U.S. has hampered ethanol producers' abilities to turn much of a profit.

Citigroup also maintained its "Neutral" rating and $29 price target on ADM, which suggests a 5% upside to the stock's Wednesday closing price of $27.66.

ADM shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of Archer Daniels Midland ( ADM ) have a 2.53% dividend yield, based on last night's closing stock price of $27.66. The stock has technical support in the $24-$26 price area. If the shares can firm up, we see overhead resistance around the $30-$31 price levels.

Archer Daniels Midland Company ( ADM ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: ADM

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