Morgan Stanley downgrades Adecoagro to Underweight on drought losses

Morgan Stanley analyst Javier Martinez De Olcoz downgraded Adecoagro to Underweight from Equal Weight with a price target of $9, down from $10. The company’s "drought-driven losses" will likely be only partially offset by better prices, the analyst tells investors in a research note. The firm believes the recent rains in Argentina are unlikely to resolve drought conditions and prefers shares of Brazil-focused SLC Agricola in the sector.