Zacks Investment Research upgraded shares of Archer Daniels Midland Company (ADM) from NEUTRAL to OUTPERFORM on February 12, 2014, with a target price of $45.00.
Based on better-than-expected bottom-line results for fourth-quarter 2013, we have upgraded our long-term recommendation on Archer Daniels to Outperform. The company's fourth-quarter results gained from robust operating performance at its Corn and Oilseeds Processing businesses, partly offset by lower profits at the Agricultural Services segment. We believe that Archer Daniels' consistent focus on enhancing its processing capabilities and global footprint through strategic acquisitions and joint ventures bode well for future growth. Furthermore, Archer Daniels' margins are expected to improve in 2014 due to robust global farm production, which will subsequently lower the prices of agricultural products. In addition, we are encouraged by the company's strong cash flow generation ability, which enables it to make investments to develop business while using the excess cash to enhance shareholder returns through dividend payouts and share buybacks.
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