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Research Alert: CFRA Lifts Opinion On Archer-daniels-midland Company To Hold From Sell
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Research Alert: CFRA Lifts Opinion On Archer-daniels-midland Company To Hold From Sell
May 26, 2025 3:16 AM

12:45 PM EDT, 05/06/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $9 to $50, implying about 12x our unchanged 2025 EPS estimate of $4.12 (2026 EPS raised to $4.59 from $4.47) versus the 14x long-term average forward P/E. ADM's Q1 results and full-year outlook (which was lowered) were better than feared. While the macro environment remains weak, there is cautious optimism for improvement in the back half of the year, driven by potential trade deals and greater clarity on biofuel policy. Q1 EPS fell 52% Y/Y to $0.70, which we believe could mark the trough. We expect Q2 EPS to be flat to slightly up, with stronger growth in 2H 2025 and into 2026. Cost savings should also support earnings, as several initiatives are underway and largely expected to be completed by 2026. We forecast EPS to decline about 13% in 2025 to $4.12, before rising 11% in 2026 to $4.59. Our upgrade to Hold from Sell reflects the stock's discounted valuation and our expectation of stronger earnings in the back half of 2025.

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