Jefferies Initiates Corn Products International Coverage; Hold-Rated, $50 PT

Jefferies is initiating coverage on shares of Corn Products International CPO with a Hold rating and $50 price target. “Corn Products' share price has historically moved in close tandem (positive 0.73 correlation) with corn co-products prices (corn oil, corn gluten feed and corn gluten meal), which we expect to be up Y/Y in 1H11,” Jefferies writes. “We expect corn futures to remain between $5 to $6 per share in coming quarters, or up 30%-50% vs. 1H10 levels and supportive of Corn Products' share price.” Corn Products International closed Wednesday at $46.77.