Zacks Investment Research downgraded shares of Syngenta AG (SYT) from OUTPERFORM to NEUTRAL on March 22, 2013, with a target price of $88.00.
Syngenta's earnings per share in 2012 came in at $22.30, a rise of 15.2% year over year. The company's revenue was boosted by healthy performance in all the geographical segments, especially North America and Latin America. Also, escalation in prices of commodities proved to be of immense help to the company. Moreover, the acquisitions undertaken during the quarter proved beneficial. In addition, sales in the coming quarters are expected to rise due to an increase in seeds as well as corn protection products portfolio. Syngenta's healthy balance sheet and high dividend pay-out stood the company in good stead. However, many resources that are spent on new products and technological developments may sometimes prove futile. Also, due to these measures Syngenta can face environmental and legal issues. Risk of foreign currency translation also remains a nagging concern. Based on the above factors, we prefer to remain on the sidelines and maintain a Neutral recommendation on the stock.
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