Monsanto (MON) Stock Declines After Barclays Lowers Price Target

NEW YORK (TheStreet) -- Shares of Monsanto (MON) are falling, down 0.88% to $104.29, after Barclays lowered its price target to $125 from $128 while maintaining its "equal weight" rating.

The company reported its third quarter earnings results on June 24, with revenue of $4.6 billion, or $2.39 earnings per share, compared to revenue of $4.2 billion, or $1.62 earnings per share in the same period last year.

Monsanto will continue to be challenged... that a smaller production crop in 2015 will lead to higher COGS per unit in 2016 hitting margins 1% to 2%, Barclays noted.

"Declines of corn seed production, coupled with a greater chance of price and mix down in 2016 than 2015, means continued pressure in corn gross profit," Barclays analysts said.

Monsanto is a provider of agricultural products that produces seeds, biotechnology trait products, and herbicides provide farmers with solutions to improve productivity, reduce the costs of farming, and produce better foods for consumers and better feed for animals.

Separately, TheStreet Ratings team rates MONSANTO CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate MONSANTO CO (MON) a BUY. This is driven by a few notable 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 revenue growth, growth in earnings per share, increase in net income, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

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