Archer Daniels Midland, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Andrew Strelzik from BMO Capital reiterated a Hold rating on the stock and has a $57.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Andrew Strelzik has given his Hold rating due to a combination of factors impacting Archer Daniels Midland’s financial performance. Despite ADM’s third-quarter earnings per share surpassing expectations, the operating profit fell short due to weaker results in segments like Crush, Refined Products, and Starches & Sweeteners. The company also revised its 2025 earnings guidance downward, indicating potential ongoing challenges, particularly with biofuels policy uncertainties that could affect future performance.
Strelzik notes that while there is potential for recovery in ADM’s Crush profits, the timing and extent remain uncertain due to policy delays and competitive pressures. Additionally, the Starches & Sweeteners segment may continue to be a drag on earnings due to softening demand and pricing pressures. Although there is optimism for a better operating environment in 2026, Strelzik believes that ADM’s potential earnings growth is already reflected in its current share price, making the stock less attractive compared to its peers.
In another report released yesterday, TR | OpenAI – 4o also downgraded the stock to a Hold with a $64.00 price target.