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

By
A A A
Share |

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 Dividend.com 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 The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: ADM

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Russell’s One Good Reason
Russell’s One Good Reason           
Tammy’s One Good Reason
Tammy’s One Good Reason             
Lisa’s One Good Reason
Lisa’s One Good Reason              
Tammy’s #OneGoodReason
Tammy’s #OneGoodReason              

Stocks

Referenced

67%

Most Active by Volume

87,324,760
  • $7.31 ▲ 22.04%
79,329,227
  • $17.16 ▲ 0.76%
74,153,988
  • $8.87 ▼ 5.84%
49,177,672
  • $34.01 ▲ 4.39%
44,802,614
  • $101.40 ▲ 1.38%
43,197,735
  • $11.70 ▲ 3.36%
42,704,187
  • $74.99 ▲ 1.19%
42,423,171
  • $108 ▲ 0.95%
As of 10/31/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com