Adecoagro downgraded to Hold from Buy at HSBC (yesterday)

As previously reported, HSBC analyst Santhosh Seshadri yesterday morning downgraded Adecoagro to Hold from Buy with a price target of $9.75, down from $15.50. Brazilian sugar and ethanol producers are likely to benefit from stronger crushing volumes and surging sugar prices, but the chance of an El Nino event by the second half of 2023 might set soft commodity prices on a deflationary track by late 2023, the analyst tells investors in a research note. The firm increased its sugar price estimates by 4%-10%, but its forecasts still imply downside to current spot levels.