Piper Jaffray Reiterates Overweight on Monsanto

Piper Jaffray is out with its report today on Monsanto MON, reiterating Overweight. In a note to clients, Piper Jaffray writes, "We are bullish on corn prices as we move through the growing season owing to higher-than-expected ethanol demand, potentially overly aggressive acreage estimates from the USDA, and drought conditions in the South. These factors will strain already tight corn inventory levels to support an upward move in prices, in our view. We believe MON shares are likely to track corn prices over the next 2-3 months through the company's seasonally slow quarter. Fundamentally, we view seed pricing action and the Fall order book as the next major catalysts for MON. Reiterate Overweight rating and $90 price target." Shares of MON closed Friday at $74.06, down 0.52% from Thursday's close.