The firm also upped its price target to $128 from $100 on shares of the St. Louis, MO-based seed producer.
JPMorgan said downside risk to the stock is around $100 per share, should Monsanto's $66 billion all-cash deal with German chemical maker Bayer (BAYRY) fail.
Monsanto shareholders would receive $128 per share if the acquisition closes, the firm added.
The risk in Monsanto's shares is "less than what the market assumes," the firm noted, the Fly says.
Separately, lawmakers including Senator Richard Blumenthal (D-CT) expressed concern yesterday about a slew of mergers between seed and chemical companies, Reuters reported.
Blumenthal said proposed deals from Bayer and Monsanto, as well as Dow (DOW) and DuPont (DD) could have "troubling" consequences.
Senator Charles Grassley (R-IA), a farmer and chair of the Senate Judiciary Committee, said large mergers could slow seed and pest control innovation for farmers.
Separately, 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.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
You can view the full analysis from the report here: MON