Soleil Cuts Estimates for Monsanto, Reiterates “Buy” for DuPont (MON, DD)

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Analysts at Soleil Securities on Thursday cut their earnings estimates for seedmaker Monsanto Company( MON ) , noting they prefer rival DuPont( DD ) 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 ( DD ). 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 opportunities."

Both Monsanto and DuPont shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of Monsanto( MON ) have a 2.30% dividend yield, based on last night's closing stock price of $48.65.
Shares of Dupont( DD ) have a 3.58% dividend yield, based on last night's closing stock price of $45.87.

Monsanto Company( MON ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars. Dupont( DD ) is also not recommended, with a DARS™ Rating of 3.4 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.

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This article appears in: Investing , Stocks

Referenced Stocks: DD , MON

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