On January 5, 2017, Monsanto announced its fiscal 1Q17 earnings. The quarter ended November 30, 2016. After the earnings release, Monsanto stock barely moved, closing the day at $105.21.
Of the 18 Wall Street analysts covering Monsanto, three of them have given the stock a “strong buy,” and eight have given it a “buy” for the next 12 months. Seven analysts have recommended a “hold,” and none of them have given it a “sell” or a “strong sell” for the same period.
Last year, Monsanto agreed to a buyout offer from Bayer priced at $128 per share. However, Monsanto stock continues to trade below that price. Investors seem doubtful that the deal will get through antitrust regulators.
Wall Street analysts have a next 12-month price target of $119.80 per share for Monsanto stock. On January 23, 2017, Monsanto closed at $108.40. That was 3.0% higher than the company’s recent 1Q17 earnings release, but it was still about 10.0% below analysts’ price target. That wasn’t the case for fertilizer companies (SOIL) such as PotashCorp (POT), Mosaic (MOS), and CF Industries (CF).
Next, we’ll take a look at FMC (FMC).