Monsanto Is Our Preferred Large-Cap Equity, Says Canaccord

At the company’s Whistle Stop investor tour in Iowa on August 20- 21, Monsanto (NYSE:MONreiterated its F2014 guidance of $5.10-5.20 (August year-end) as well as its expectation to at least double EPS by F2019. The one new comment they highlighted was that given the challenging environment that exists with the decline in grain and oilseed pricing since the spring, Monsanto sees “double-digit to midteens growth” in EPS for 2015 versus their mid-teens growth expectation of the past several years.

In a research note issued today, Canaccord analyst Keith Carpenter maintained a Buy rating on MON with a $155 price target, following the investor tour.

Carpenter noted, “Given our expectation of continued sales volume increases and margin expansion going forward in the Seeds and Genomics platform, the nearterm uplift in earnings from the Intacta soybean, the potential of the Precision Ag platform a few years out, as well as the more aggressive return of capital to shareholders, all of this continues to bode well for shareholders, and it speaks to why we continue to rate Monsanto as our preferred large-cap equity and why it remains on Canaccord Genuity’s Focus List.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Keith Carpenter has a total average return of 8.9% and a 71.4% success rate. Carpenter has an 9.8% average return when recommending MON, and is ranked #1569 out of 3257 analysts.

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