Piper Jaffray Reiterating Overweight On Monsanto (MON)

Piper Jaffray is reiterating its Overweight rating and $75 price target on shares of Monsanto Company MON. In a note sent to clients, Piper Jaffray writes, "We are reiterating our overweight rating on shares of MON following the USDA's favorable Environmental Impact Statement (EIS) on biotech alfalfa, next step in deregulation of the crop. We are encouraged as to the implications this review may have on the deregulation of sugar beets. Beet growers and co-operatives in the West and Mid-West are optimistic that the USDA's permits for seed production through the 2011 growing season will be upheld, thereby ensuring a supply of roundup ready seeds when beets are eventually deregulated in 2012. This could re-open a market of ~$200 million of revenue upside (and several pennies of EPS depending on penetration) to our FY12 estimates." Shares of MON gained 58 cents yesterday to close at $65.18, a gain of 0.9%.