Corn Products International Momentum Improves

In a recent report from BB&T Capital Markets, Corn Products International CPO has an improved fundamental outlook based on the better-than-expected potential accretion from the NS acquisition. BB&T sees CPO shares as very attractive at current levels despite strength over the past few weeks. Corn Products Intl. byproduct values increased nearly 15% since Q2 earnings. BB&T feels it worth noting that CPO typically has some relatively small portion of its U.S corn needs un-hedged and spot corn prices have increased much more than byproduct values. Domestic volumes should be decent, given a stable consumer. BB&T does not expect blockbuster volumes from the US, but it believes volumes are solid. Demand from South America and Mexico remains strong as well. Risks to the target price include higher than expected costs, weaker than expected volumes, sustained foreign exchange volatility, and pricing pressure on end products. Corn Products Intl. closed Wednesday at $37.41 BB&T has a Buy rating on CPO with a price target of $44