UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on Monsanto Company on Multiple Positive Factors

In a report published Thursday, J.P. Morgan analyst Jeffrey J. Zekauskas reiterated an Overweight rating on

, and raised the price target from $108.00 to $111.00. In the report, J.P. Morgan noted, “Monsanto is one of the two larger factors in the domestic and global row crop sector. Both Monsanto and DuPont/Pioneer are leaders in innovation. Barriers to entry into the Seed industry are high because new seed products must include, build upon or complement the performance characteristics of products already introduced into the agricultural markets. In addition, new innovators in Seed technology have difficulty effectively accessing demand without the direct assistance of the industry leaders. Growing global populations provide the impetus to demand growth. Technology improvement, leading to high crop yields, is an accelerator of profit growth. Accordingly, the Seed companies tend to be strong business franchises with excellent long-term profit characteristics. We believe that given Monsanto's high level of free cash flow generation, the healthiness of its customer base and the expected tightness in seed supply in 2013, Monsanto's good growth and return characteristics can be captured at a reasonable price. We rate Monsanto shares Overweight.” Monsanto Company closed on Wednesday at $100.84.