January 21, 2011
Soaring grain prices to drive ADM, Bunge earnings
Credit Suisse announces that soaring and unpredictable grain prices will bring growth of returns for Archer Daniels Midland and Bunge, as it upgraded the companies from neutral to outperform.
Credit Suisse analysts have more short-term assurance in ADM's results. Meanwhile, Bunge management is re-establishing confidence as analysts call the stock "one of the best three-year ideas in the entire agribusiness value chain."
Credit Suisse asserts that there is still time to purchase grain processors because they have lagged other companies in the agribusiness boom.
It raised Bunge's target price to US$88 from US$65, and ADM to US$40 from US$37.
