Bank Of America Upgrades Rating On MON

Bank of America, highlighting positive growth through the sector, has upgraded its rating on Monsanto MON from Neutral to Buy, but is maintaining its $80 price target on the stock. According to Bank of America, “In connection with our reassessment of risk within the chemicals sector, we upgrade shares of Monsanto, the global leader in biotech seeds. Our rating moves to Buy from Neutral given the defensive nature of seeds and prospects for double-digit earnings growth at a more reasonable valuation. Relative to other stocks in our coverage, we see limited downside risk to earnings given growth prospects in biotech seeds and low sensitivity to the economic cycle. We also appreciate Monsanto's balance sheet with net debt of 0.4x EBITDA.” MON closed at $67.29 yesterday.