Citi Comments On Monsanto Pullback

According to Citi, Monsanto MON pullback is buying opportunity. Citi reported that, while 2Q adjusted EPS of $1.87 was slightly ahead of its $1.83 estimate, it believes that investors were disappointed by the initial pricing guidance for the 2012 planting season provided on today's earnings conference call. “Management continues to favor a pricing strategy which promotes new trait adoption and does not expect to aggressively raise prices next year. While a slower ramp up in pricing may dampen the pace of earnings growth in 2012, the strategy positions MON well for the long-term by helping repair the company's relationship with farmers and potentially boosting adoption ahead of key new product launches (like refuge-in-a-bag and drought tolerance) and patent expirations (such as Roundup Ready). We think investors should use today's ~6% pullback as a buying opportunity.” ImmunoGen closed yesterday at $9.30.