Monsanto (MON) Stock Up After EU Approves Biotech Soybeans Import
NEW YORK (TheStreet) -- Shares of Monsanto (MON) are higher by 0.18% to $106.29 in mid-morning trading after the European Commission said the company could import two types of genetically modified soybeans, as well as one bean sold by Bayer (BAYRY), to use as food or livestock feed, Reuters reports.
The import approval for the St. Louis-based sustainable agriculture company comes after EU member states failed to make a decision on their own.
The disagreement among member states stemmed from political unrest surrounding Monsanto. Consumer and green groups have protested the company based on risks to health and to the environment.
The European Commission said that it will keep "strict labeling and traceability rules" on the beans to make sure they're only used for food or livestock feed, not for growing crops.
Monsanto may be acquired by Bayer, although the company turned down Bayer's second takeover bid of $54.7 billion earlier this week, calling it "financially inadequate."
Separately, 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. TheStreet Ratings has this to say about the recommendation:
We rate MONSANTO CO as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: MON
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