Topeka Capital upgraded Monsanto Company (
) on Tuesday due to an expectation of growth in the coming
The analysts upgraded MON from "Hold" to "Buy" with a price
target of $107. The valuation is a +20% upside from Tuesday's
closing price of $89.23.
The firm commented, "When initiating coverage with a Hold rating
in Sept., we acknowledged MON's positive commercial momentum, and
anticipated positive Ag fundamentals - particularly in corn - would
remain a favorable tailwind for the Company. These aspects of the
MON story remain intact. Our cautiousness was based primarily on
perceptions regarding questions about the diminishing effectiveness
of certain biotech traits, which could ultimately undermine MON's
valuation, along with perceived uncertainty regarding the impending
expiration of MON's RR patent in 2014. We now believe these
potential issues could be less acute, if not benign, at least in
the relatively near-term. Meanwhile, reduced "headline risk",
improving visibility regarding the 2013 growing season, and
prospective increasing enthusiasm for MON's growth prospects in
Latin America, now seem likely to help MON shares outperform into,
if not through, FY13-14. Accordingly, we are upgrading our rating
from Hold to Buy."
Monsanto shares were flat in premarket trading on Wednesday. The
stock is up +27.34% year-to-date.
The Bottom Line
Shares of Monsanto (
) have a 1.68% dividend yield, based on last night's closing stock
price of $89.23. The stock has technical support in the $83-$85
price area. If the shares can firm up, we see overhead resistance
around the $91-$94 price levels.
Monsanto Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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