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Syngenta (SYT) Poised to Grow Amid Headwinds: Buy Now?

On Mar 14, 2016, we issued an updated research report on Syngenta AGSYT . The company's business involves manufacturing, marketing and research to enhance crop yields and food quality by offering superior seeds and pesticides. Syngenta has a high brand value and operates in more than 90 countries. However, its extensive business exposes the company to certain market-specific threats.

Bullish Factors

Despite the unfavorable trading environment, Syngenta aims to achieve better results on the back of improved liquidity. Through its new Accelerating Operational Leverage program, the company intends to generate adequate free cash flow to finance future investments. By 2018, the premium agricultural chemical company expects to accrue savings worth $1 billion and an EBITDA margin of 24-26% on the back of this program.

Syngenta plans to boost revenues through product innovations, going forward. Further research and developmental activities should enhance its aggregate sales in the upcoming quarters.

Investors' Concerns

We believe that this Zacks Rank #2 (Buy) stock would continue to improve its top- and bottom-line results in the quarters ahead. However, certain issues like the impact of unfavorable weather, low commodity prices and tight credit conditions are currently weighing on the company. The appreciating U.S. currency, combined with the persistence of such issues, might further dent the company's earnings and margins.

Other Stocks to Consider

Other well-placed stocks in the industry are Avino Silver & Gold Mines Ltd. ASM , Golden Minerals Company AUMN and Fortuna Silver Mines Inc. FSM . All the three companies have the same Zacks Rank as Syngenta.

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GOLDEN MINERALS (AUMN): Free Stock Analysis Report

FORTUNA SILVER (FSM): Free Stock Analysis Report

SYNGENTA AG-ADR (SYT): Free Stock Analysis Report

AVINO SILVER&GD (ASM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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