Deutsche Bank Agribusiness Preview: Highlight - Sweet Pricing

Deutsche Bank Agribusiness Preview: Highlight - Sweet Pricing

Deutsche analyst says, "We highlight Corn Products (NYSE: CPO) as our best Agribusiness idea. Strong visibility into 2012E and low valuation are compelling. Margin-enhancing NA pricing & positive impact of hike in Brazilian minimum wage on beverage demand, plus synergies & lack of Argo costs provide strong tailwinds, only partially offset by FX."

For Bunge (NYSE: BG) : "Improved Brazilian farm economics on weaker BRL is positive for raw material visibility in 1H12E, with strong farmer forward selling. However FX is a headwind in 3Q, and global crush margins remain weak. We reduce 2011 EPS to $6.02 from $6.67 (consensus is $6.61), owing to assumed weaker Agribusiness profits, and an FX loss in 3Q. Our 3Q11 EPS estimate is $1.22, down from $1.59 (note consensus is $1.65). We reduce target from $80 to $74, maintain Buy with target offering 30% upside."

For Archer Daniels Midland (NYSE: ADM): "From a headline perspective, ADM F1Q12E (end Sept.) should come in stronger than consensus, based on our estimates. We remain on the sidelines as we view this outperformance as technical (accounting benefits – mark to market reversals, LIFO) and transitory (ethanol). We raise F1Q12E (end Sept.) EPS to $0.81 from $0.73 on an assumed LIFO benefit (compared to our prior assumption of a LIFO charge), incorporation of mark to market reversal in Oilseeds, as well as higher Bioproducts profits."

---

GET THE HOTTEST RESEARCH CALLS ON THE STREET- FREE TRIAL!