Analysts at Soleil Securities on Thursday cut their earnings
estimates for seedmaker Monsanto Company(
) , noting they prefer rival DuPont(
) in the agriculture space.
The firm maintained its "Hold" rating and $50 price target on
MON, however. That target represents an expected 9% upside over the
stock's Wednesday closing price of $45.87.
A Soleil analyst commented, "We cut our MON F2011E EPS to $2.65
from $2.75 on several areas of execution risk discussed below.
Guidance is for $2.77 and current consensus is for $2.84. We launch
a F2012E of $3.05…We favor DuPont (
). Given limited upside in Monsanto, we see more upside in DuPont
(Buy-rated), which should benefit from Monsanto's execution
issues…Potential catalysts, next year. Three products in Phase IV
which should launch in F2012E: drought-tolerant corn, refuge in a
bag, and insect-protected soy in Brazil. But we note that Pioneer
should have competitive products for the first two
Both Monsanto and DuPont shares were mostly flat in premarket
The Bottom Line
Shares of Monsanto(
) have a 2.30% dividend yield, based on last night's closing stock
price of $48.65.
Shares of Dupont(
) have a 3.58% dividend yield, based on last night's closing stock
price of $45.87.
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars. Dupont(
) is also not recommended, with 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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