Food products maker Archer Daniels Midland Company (
) on Wednesday received some tepid commentary from analysts at
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 (
) 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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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