Archer Daniels Midland upgraded to "overweight"

09/27/05 - Prudential Financial

NEW YORK, September 27 (newratings.com) - Analyst John M McMillin of Prudential Financial upgrades Archer Daniels Midland (ADM) to "overweight," while raising his estimates for the company. The target price has been raised from $22 to $27.

In a research note published this morning, the analyst mentions that the company’s ethanol contracts, which are due to roll off in March, are expected to be able to realise significantly higher rates. According to the analyst, increased ethanol prices are likely to boost the company’s earnings from the June 2006 quarter. The EPS estimate for FY06 has been raised from $1.45 to $1.50.