Will Monsanto (MON) Stock Gain by Investing in Agricultural Tech in Brazil?

Monsanto (MON) said yesterday it would partner with Microsoft (MSFT) to invest in agricultural technology startups in Brazil.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Monsanto (MON) will partner with Microsoft (MSFT) to invest in agricultural technology startups in Brazil, Reuters reported.

The St. Louis-based agricultural products giant will join a Brazilian investment fund with up to 300 million reais, or $92 million, which is managed by Microsoft.

The fund evaluates ideas for new digital tools that can be applied to agricultural output in Brazil, according to executives cited by Reuters.

The chosen ideas will initially receive funding of up to 1.5 million reais or $459,000 for beginning development.

The owners of the projects will be able to either pay back the investment after three years or convert the money into equity, Reuters noted.

"We want to foster new startups in the agricultural sector. There is a vast area for research and development," Rodrigo Santos, head of Monsanto in Latin America, told reporters, Reuters said.

Shares of Monsanto closed lower by 2.02% to $101.32 on Friday.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins.

The team believes its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

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.

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

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