Analysts’ Recommendations and Price Targets for Monsanto
Analysts’ consensus price target for Monsanto is $122.70 per share over the next 12 months.
For fiscal 2017, Monsanto’s free cash flow is estimated to fall on an absolute basis to $1.4 billion.
Monsanto (MON) is currently trading at a forward PE multiple of 23.9x, which is higher than the peer median of 22.6x.
Wall Street analysts estimate that Monsanto (MON) could report EBITDA of $1.9 billion in fiscal 2Q17, which would mean an EBITDA margin of 40.7%.
For Monsanto’s upcoming fiscal 2Q17, Wall Street analysts are expecting Monsanto to report EPS (earnings per share) of $2.79.
For Monsanto’s upcoming fiscal 2Q17, Wall Street analysts are estimating $4.7 billion in revenue, a 4.3% rise year-over-year from $4.5 billion.
Monsanto (MON) has had an average gross margin of 54.0% over the past three years, which was comparable to Syngenta’s (SYT) 49.0%.
Monsanto (MON) is set to announce its fiscal 2Q17 earnings on April 5, 2017. It was trading at $114 on March 27, 2017.
The US is among the few countries with a corporate tax rate higher than 35%. President Trump promised to lower overall tax rates for corporates to 15%.
For the week ending March 24, agribusiness stocks were in negative territory. The VanEck Vectors Agribusiness ETF (MOO) fell by 98 basis points.
In the week ending March 24, the Fertilizer Affordability Index rose slightly to 0.62x from 0.61x the previous week. Last year, the index stood at 0.66x.
For the week ending March 24, 2017, potash prices were broadly mixed. Overall, potash prices continued to show weakness in the potash environment.
Over the last few weeks, MAP prices have steadily trended higher in Brazil, but MAP prices made a u-turn for the week ending March 24.
The week ending March 24 was flat to negative for DAP (diammonium phosphate). Prices in the NOLA region fell 1.9% to $310 per short ton week-over-week.
Based on data provided by the EIA last week, average weekly natural gas prices at Henry Hub rose by an average of 7% to $2.95 per MMBtu.
For the week ending March 24, urea prices were broadly negative week-over-week. Urea prices have been under pressure due to excess capacity.
The week ending March 24, 2017, was broadly negative for agricultural fertilizer stocks. The VanEck Vectors Agribusiness ETF (MOO) fell 0.98%.
Of the four analysts surveyed by Reuters on March 23, 2017, none had “strong buy” or “buy” recommendations on Intrepid Potash (IPI) for the next 12 months.
Intrepid Potash (IPI) has a volatile history. The stock closed at $1.65 on March 23, 2017, a 20.7% fall YTD (year-to-date).
Investors’ returns have taken a hit and so has the confidence in the uptick of the fertilizer industry. Let’s discuss these returns in more detail.