NEW YORK (TheStreet) -- Before Wednesday's market open, Monsanto (MON) stock rating was raised to "buy" from "hold" by Jefferies analysts, who also increased their price target to $132 from $95 for the St. Louis-based agricultural company.
Shares of Monsanto are gaining 3.20% to $112.80 in mid-morning trading after the company rejected a $62 billion, or $122 per share, takeover offer from the German chemical company Bayer (BAYRY) on Tuesday.
Monsanto's response indicated that the company may seek more than $130 per share, but without a deal, Monsanto's stock will likely return to about $100 per share, Jefferies analysts explained their note released today.
Additionally, the company is likely to benefit from higher corn prices because of lower yields, leading to price support between 2017 and 2020.
Corn at $4 per bushel "speaks to a tighter supply/demand balance than we had anticipated, and could lead investors to look past farmer stress in 2H16-1H17," analysts added.
Separately, Monsanto has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's expanding profit margins and notable return on equity.
You can view the full analysis from the report here: MON
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 article's author.