JPMorgan Downgrades Archer Daniels (ADM) to Underweight, Cuts Price Target to $59
Archer-Daniels-Midland Corporation (NYSE:ADM) includes: 15 Best Dividend Growth Stocks to Buy Now.
As reported by The Fly, on November 4, JPMorgan downgraded Archer-Daniels-Midland Company (NYSE:ADM) from Neutral to Underweight and lowered the price target from $61 to $59. The company said its third-quarter earnings beat estimates, but the lowered guidance points to ongoing profit challenges beyond uncertain U.S. biofuel policies and trade relations with China. ADM’s Carbohydrate Solutions segment continues to face pressure from declining demand for packaged foods, particularly those containing sugar additives.
Archer-Daniels-Midland Company (NYSE:ADM) highlighted in its third quarter report that clarity around biofuel regulations and developments in global trade policy could be key factors driving demand for the industry moving forward. The company generated $20.3 billion in revenue in the quarter, an increase of 2.18% compared to the same period last year. ADM has generated $5.8 billion in year-to-date cash flow and $2.1 billion in cash flow from operations before capital adjustments.
Despite near-term challenges, analysts remain optimistic about Archer-Daniels-Midland Company’s (NYSE:ADM) long-term outlook, noting its economies of scale, integrated operations and strong position in the agricultural value chain. These strengths are expected to support steady growth as global demand for food and biofuels continues to increase.
Archer-Daniels-Midland Company (NYSE:ADM) is a leading global agricultural company engaged in the production and trading of food ingredients, animal nutrition products and biofuels.
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