Agriculture & Fertilizer Stocks

AG Stock Trades

Sunday, February 6, 2011

Dupont stock to ride out agricultural boom-Barron's

NEW YORK, Feb 6 (Reuters) - U.S. chemicals group Dupont's (DD.N) shares could be one of the best ways for investors to profit from the the boom in agricultural stocks, business weekly newspaper Barron's said in its Feb. 7 edition.

Dupont, which recently made a $6.3 billion bid for Danish food producer Danisco (DCO.CO), would derive one-third of its revenue from seeds and other agricultural products if Danisco shareholders approve the deal, Barron's said.

The deal should start adding to Dupont's earnings next year and increase long-term profit growth by two percentage points to between 13 percent and 14 percent per year, Barron's said, citing a Soleil Securities analyst.

Dupont shares are cheaper on a price-expected earnings ratio basis than those of fertilizer maker Potash Corp of Saskatchewan (POT.TO) and biotech company Monsanto (MON.N), Barron's wrote. (Reporting by Phil Wahba, editing by Maureen Bavdek)

No comments: