This article was originally published on TipRanks.com
Food processing and commodities trading corporation Archer-Daniels-Midland Company (NYSE:ADM), popularly known as ADM, recently announced that it has joined hands with Wolf Carbon Solutions, an energy infrastructure company, to reduce ADM’s carbon footprint.
Following the news, shares of the company gained marginally to close at $70.48 in Tuesday’s extended trading session.
With this partnership, ADM and Wolf Carbon will construct a pipeline that will allow for the capture, compression and transportation of carbon dioxide produced at ADM’s facilities in Clinton and Cedar Rapids, Iowa.
The pipeline will be capable of transporting 12 million tons of CO2 per year. Further, the pipeline would have significant spare capacity to serve third-party customers looking to decarbonize across the Midwest and Ohio River Valley regions.
Management Weighs in
The President of Carbohydrate Solutions for ADM, Chris Cuddy, said, “ADM is continuing to lead the way to decarbonize the industries in which we operate. This is an exciting opportunity for ADM to connect some of our largest processing facilities with our carbon capture capabilities, advancing our work to significantly reduce our CO2 emissions while delivering sustainable solutions for our customers. These efforts are core to our purpose, our culture and our growth, and we look forward to working with Wolf Carbon Solutions to finalize this agreement and further decarbonize our operations and our industry.”
On January 11, Morgan Stanley analyst Vincent Andrews reiterated a Hold rating on the stock with a price target of $69, which implies downside potential of 2.1% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average ADM stock prediction of $71.71 implies that the stock has upside potential of 1.8% from current levels. Shares have gained about 37.1% over the past year.
News Sentiment for ADM is Positive based on 8 articles over the past seven days. 80% of the articles have Bullish sentiment, compared to the sector average of 60%, while 20% of the articles have Bearish sentiment, compared to the sector average of 40%.
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