Recommendations and price targets
In this final part of the series, we’ll look at Wall Street analysts’ recommendations and price target changes for Monsanto (MON) over the next 12 months. Keep in mind that Bayer’s acquisition price for Monsanto is $128 per share, but MON stock was trading at an ~11.0% discount at $114.09 on March 27, 2017.
Analysts’ price target
As you can see in the above graph, analysts’ consensus price target for Monsanto is $122.70 per share over the next 12 months. This price target has been gradually revised upward from $106 over the past 15 iterations, beginning in January 2016. Interestingly, the analysts’ price target is below Bayer’s acquisition price, which may indicate some concern over whether the acquisition will happen.
As of March 27, 2017, analysts’ ratings for Monsanto are leaning toward a “buy.” Of the 18 analysts surveyed by Reuters, three had a “strong buy” for the stock, and seven had a “buy” recommendation over the next 12 months. Eight analysts gave it a “hold” rating, and none of them recommended a “sell” or “strong sell.”
The ratings for other agribusiness companies (SOIL) such as FMC (FMC), PotashCorp (POT), and Agrium (AGU) are similar. To find out more, be sure to read our recent monthly report, March Update: Agribusiness Stock Recommendations, Price Targets.