The analyst firm said that sales of Monsanto's Intacta soybeans won't meet expectations. Sales of the genetically engineered soybean are weaker than expected in Brazil and Argentina, according to OTR Global analysts.
Monsanto said it is currently on pace to reach its global goal of 10 million to 12 million acres of Intacta this year, according to Bloomberg. "Our view is backed by the fact that our sales are tracking right on target, with greater-than-expected pre-pays already coming through the system for Intacta this year," Monsanto spokeswoman Sara Miller told the publication.
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TheStreet Ratings team rates MONSANTO CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONSANTO CO (MON) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."