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What Are Analysts’ Target Prices before ADM’s 2Q16 Results?

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Target prices

As on July 25, Archer Daniels Midland’s (ADM) ratings and target prices from Wall Street analysts changed slightly since we discussed the acquisition of a Casablanca, Morocco-based corn wet mill. Read ADM Acquires Moroccan Sweetener Facility: How Will It Benefit? to learn more.

Around 77% of the analysts rate Archer Daniels Midland a “hold” and 23% gave it a “buy” rating. No analysts rated it as a “sell.” The average target price for Archer Daniels Midland increased to $43.22 from $41.56. This demonstrates that Archer Daniels Midland already beat the target price estimate by ~1% as of July 25. It closed at $43.60.

Below are the target prices and return potentials for Archer Daniels Midland’s peers in the industry.

  • Bunge (BG) has a target price of $71.91 and return potential of 14.6%.
  • Ingredion (INGR) has a target price of $125.33 and return potential of 5.9%.
  • B&G Foods (BGS) has a target price of $43.38 and return potential of 8.1%.

The PowerShares Dynamic Large Value (PWV) and the SPDR S&P Dividend ETF (SDY) invest 1.5% and 1.3% of their portfolio in Archer Daniels Midland.

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Analysts’ recommendations

As of July 25, BMO Capital Markets and Macquarie are consistent with their “strong buy” rating for Archer Daniels Midland. They have the highest target price of $48 and $45. This is 10% and 3% higher than the closing price of $43.60 on July 25. On May 26, Citigroup upgraded Archer Daniels Midland from “neutral” to “buy” with a target price of $50—a potential rise of 14%. Citigroup stated in a report that “Global agricultural markets have rapidly swung in favor of ADM’s operations over the course of the past 6-8 weeks, which has prompted us to increase our earnings outlook.”

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