NEW YORK (TheStreet) -- Andersons (ANDE) stock has been upgraded to "outperform" with a $56 price target, BMO Capital said. The firm said it expects company fundamentals to bottom in the third quarter.
Separately, TheStreet Ratings team rates ANDERSONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANDERSONS INC (ANDE) a BUY. This is driven by several positive factors, 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 79.09% and other important driving factors, this stock has surged by 26.44% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ANDE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ANDERSONS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ANDERSONS INC increased its bottom line by earning $3.18 versus $2.83 in the prior year. This year, the market expects an improvement in earnings ($3.60 versus $3.18).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 80.5% when compared to the same quarter one year prior, rising from $12.58 million to $22.71 million.
- ANDE, with its decline in revenue, underperformed when compared the industry average of 6.6%. Since the same quarter one year prior, revenues fell by 21.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: ANDE Ratings Report