NEW YORK (AP) -- A Banc of America Securities analyst upgraded Monsanto Co. on Thursday, citing a pullback in share price and expected growth in sales of genetically modified crops and seeds.
Analyst Kevin McCarthy raised his rating to "Buy" from "Neutral," saying a recent slide in the stock price has made shares a better value. He is now less concerned about Monsanto's competition, and thinks the company has several promising products in its pipeline
The analyst said crop prices are rising, and farmers are devoting more space to genetically modified seeds because they can increase crop yields. That is driving greater use of Monsanto's RoundupReady seeds, and should lead to use of developing products like RoundupReady2 soybeans and drought-tolerant corn.
He said that could lead to earnings per share growth of 20 percent or more over the next five years.
The stock reached an all-time high of $129.28 on Jan. 15, and is down 18 percent since that time. McCarthy expects shares to rise to $130 over the next year. His previous price target was $116.
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