Jefferies Comments On Likely Solid Beat For Monsanto

According to Jefferies, Monsanto MON is expected to meet or beat its Q2 estimate of $1.90, $0.05 above consensus, and tighten its range for the year. Jefferies reported that order trends should be solid for both RR2Y soybeans and the SS/VT3 family of products. “The momentum appears largely discounted: we reiterate our Hold rating. MON trades at 25.5x 2011E EPS and 22.2x 2012E EPS. Our companion report today raises our target $3 to $73, or 212.1x 2012E EPS and is based on a 50/50 blend of peak/"froth" and mid-cycle (sum-of-the-parts, DCF, and discounted P/E) models. Key risks: regulatory hurdles for biotech crops, competitive threats.” Monsanto closed on Friday at $73.17.