Thursday, October 7, 2010

Monsanto (NYSE:MON) Dropped from Goldman (NYSE:GS) "Conviction Buy List"

Goldman Sachs (NYSE:GS) said they've removed Monsanto (NYSE:MON) from their "Conviction Buy List," citing weaker guidance for 2011 and uncertainty concerning results in the fourth quarter.

Although Monsanto reported stronger results year-over-year in their earnings report, they failed to meet analysts' expectations, and as mentioned, lowered guidance going forward.

A lot of uncertainty over the performance of SmartStax corn seed hangs over the company, which they had been counting on to be a major revenue and earnings driver. Initial feedback has the seed underperforming estimates.

Immediately after Monsanto released their quarterly results Wednesday, the stock jumped on better than expected sales, but that was quickly tempered as the market digested the overall report, closing slightly up at $48.65, gaining $0.13, or 0.27 percent.

Goldman maintains their "Buy" on the stock, with a price target of $64.

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