Monsanto (MON) Stock Down, Citi Increases Price Target After Tumultuous Week

Monsanto (MON) stock is down after a week including a merger bid, a disappointing earnings release and scrutiny from the EU Antitrust commissioner.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Monsanto (MON)  are down 0.29% to $103.10 this morning, even though Citi increased its price target on the stock to $112 from $94 today while the company negotiates a controversial merger.

Citi has a "neutral" rating on shares of the seed and chemical giant.

Monsanto is currently embroiled in negotiations for a merger with German chemical company Bayer (BAYRY) despite negative comments from the EU's Antitrust Commission.

The European Union's Antitrust Chief Margrethe Vestager said in a letter to German lawmakers on Wednesday that they would very strictly apply European merger control rules, even though a merger has not been officially announced.

Preemptive comments from the commission have given investors reason to pause. The EU would closely examine how the merger might impact prices, research, innovation and the availability of seed products.

Despite the warning from Vestager, Monsanto is forging ahead with the deal. Monsanto is seeking $7 billion more from Bayer on top of its rejected offer of $62 billion earlier this week, Reuters reported.

Additionally, Monsanto reported disappointing third-quarter results this week, with earnings of $2.17 per share on revenue of $4.19 billion, an 8.5% decline from a year ago, vs. analyst expectations of $2.40 in per-share earnings on $4.49 billion in revenue.

Separately, TheStreet ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

You can view the full analysis from the report here: MON

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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