Piper Jaffray "Incrementally More Optimistic" About Monsanto 3Q11, Maintains OW Rating and $95 PT

Piper Jaffray is incrementally more optimistic about Monsanto's MON 3Q11 results “following a series of positive conversations with cotton growers and seed distributors across the Southern United States.” “Cotton seed sales typically peak in 3Q; growers in two key markets for Monsanto (the U.S. and India) are both expecting planted acres to increase ~20% y/y, owing largely to record cash receipt expectations of up to $1.15 per pound,” Piper Jaffray writes. “With the potential for mix shift to second generation doubles in the U.S. and singles in India, we see ample room for upside in our 15% y/y estimates for cotton in 3Q. Maintain Overweight rating and $95 target.” Monsanto closed Friday at $69.64.