J.P. Morgan Retains ‘Neutral’ Rating For Archer Daniels Midland (ADM, JPM)

Reuters has reported that the U.S. Department of Energy has asked for further testing on the safety of raising the ethanol blend wall above 10%. This may delay the Environmental Protection Agency’s decision on this topic. The EPA was expected to have test results available by the end of this month. Archer Daniels Midland ADM earnings and return metrics are likely to remain subdued due to this. Its stock price is also highly correlated with ethanol processing margins over the past year. J.P. Morgan JPM has retained its neutral rating for the stock.