Citi analyst Thomas Palmer maintains $Archer Daniels Midland (ADM.US)$ with a hold rating, and sets the target price at $55.
According to TipRanks data, the analyst has a success rate of 53.8% and a total average return of 3.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Archer Daniels Midland (ADM.US)$'s main analysts recently are as follows:
The firm gained insights from ADM's Q3 earnings dialogue, highlighting short-term challenges and opportunities for offsetting cyclical drawbacks through operational advancements. It identifies potential for ADM's earnings to gain from increased crush volumes, the reinitiation of Decatur East, recovery both operationally and in demand within the Human Nutrition sector, and strategic capital utilizations. Nonetheless, the firm expressed uncertainty regarding the extent of foreseeable recovery in the agriculture products sector, particularly given the growing pressures on crush margins and refined oil spreads.
The company's third quarter conference call highlighted ongoing pressures in crush, challenges due to biofuel regulatory uncertainties, and continued weakness in the Human Nutrition sector, leading to management reaffirming their revised downward guidance from last month.
Archer Daniels' Q3 earnings fell short of expectations primarily due to weaknesses in their Ag Services & Oilseeds (AS&O) segment and Nutrition profits, although this was somewhat mitigated by ongoing strength in Carb Solutions. Challenges in normalizing AS&O fundamentals, coupled with uncertainties concerning U.S. biofuels policy and the Nutrition sector's outlook, are expected to constrain earnings into 2025.
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