Canaccord Genuity analyst Keith Carpenter came out with a research report on Monsanto Company (NYSE:MON) after the company reported its fiscal third quarter earnings results. The company reported an EPS of $2.39, lower gross profit in the Seed and Genomics (which was offset by higher gross profit in Agriculture Productivity segment), lower operating costs, and a lower income tax rate. Carpenter maintained a Buy rating on the stock, but reduced the price target to $134 (from $143), which implies an upside of 26% from current levels.
Carpenter commented, “We continue to like Monsanto for the long-term growth potential, and in light of significant headwinds over the past year, the company is still expected to generate YOY EPS growth of 10% in F2015, followed by our expectations of 9.2% and 12.6% growth in EPS in F2016 and F2017, respectively.”
“The company expects further beneficial licensing agreements going forward, but unfortunately, we cannot estimate those in our model, because they would simply be placeholders without knowing until they are announced exactly what product would be involved.”, the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Keith Carpenter has a total average return of -1.4% and a 30.4% success rate. Carpenter has a 1.3% average return when recommending MON, and is ranked #2884 out of 3632 analysts.
Out of the 18 analysts polled by TipRanks, 11 rate Monsanto Company stock a Buy, while 7 rate the stock a Hold. With a return potential of 16.3%, the stock’s consensus target price stands at $123.68.