Credit Suisse Upgrades Archer Daniels Midland (ADM)

Credit Suisse is upgrading Archer Daniels Midland ADM from Neutral to Outperform. In a note to clients, Credit Suisse writes, "We are upgrading ADM to Outperform (from Neutral) because we believe that structurally higher and more volatile grain prices will lead to margin expansion, volume growth, and positive earnings revisions during the course of 2011. ADM management's confident tone in recent meetings leads us to believe that they had an excellent fiscal third quarter in Agriculture Services due to strong volume, volatility, and favorable hedges on grain. Grain processors stocks have trailed their agribusiness peers since grain prices started rising in the summer, so it is not too late to buy them." Credit Suisse is raising its price target from $37 to $40. ADM is trading pre-market at $34.25, up 1.57% from yesterday's close.