Deutsche Bank (DB) increased its price target on shares of Archer Daniels Midland Co. (NYSE:ADM) to $35 from $31, while maintaining its "Hold" rating.
ADM should continue to benefit from more frequent periods of dislocation in the agribusiness chain across a variety of crops, particularly as it builds out its global infrastructure over the long term.
The brokerage expects trends to remain muted through the summer owing to overcapacity in oilseeds globally, poor ethanol margins, tight corn basis. However, with a large expected corn crop in the U.S., ADM's prospects can drastically change.
Archer Daniels Midland is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. It is a processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities and is a manufacturer of vegetable oil, protein meal, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients.
ADM is trading down 0.33% at $32.91 on Wednesday.