Deutsche Bank Pounding The Table On Monsnto (MON)

Deutsche Bank is out with a research report reiterating its Buy rating on shares of Monsanto Company MON, after the stock fell sharply yesterday on concerns its SmartStax seeds were not yielding as much as expected. Deutsche Bank lowered its price target to $65 from $70 In the report, Deutsche Bank writes, "Monsanto shares fell 8% yesterday on concerns over SmartStax yields in Iowa coming in below those of its triple stack seeds. We believe these concerns are misplaced. Our analysis of nearly 500 data points shows that the issue is with a particular germplasm (which did not respond well to the severe summer heat), not the SS trait. This is evident in southern Iowa where DeKalb 61-21 (with the SS trait) yielded 186.8 bu/acre vs DeKalb 61-06 (also with the SS trait) which yielded 204.2 bu/acre – a 17.4 bu/acre difference." Shares of Monsanto closed at $48.75 yesterday, a loss of $4.32.