BMO Capital sets $45 target for The Andersons stock, sees 19% upside

Published 05/05/2025, 21:56
BMO Capital sets $45 target for The Andersons stock, sees 19% upside

On Monday, BMO Capital Markets began coverage of The Andersons , Inc. (NASDAQ: NASDAQ:ANDE), a diversified Agribusiness firm, with a ’Market Perform’ rating and a $45.00 price target. The target suggests an approximate 19% potential increase from the company’s current share price. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 11.2x and is currently near its 52-week low of $35.88, suggesting potential value opportunity.

The Andersons, which plays a significant role in the North American agricultural supply chain, is expected to experience a decline in profits for the year 2025. According to BMO Capital Markets, this anticipated decrease is due to weaker fundamentals in the Agribusiness and Renewables sectors, specifically ethanol. However, this negative outlook may be mitigated by stronger performance in the Nutrient & Industrial division, particularly fertilizer profits, and the positive impact from the company’s investment in Skyland Grain.

BMO Capital Markets’ valuation of The Andersons is based on a multiple of roughly 6 times the enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) on the estimated adjusted EBITDA for 2025.

The coverage initiation by BMO Capital Markets provides investors with an assessment of The Andersons’ stock potential, factoring in various elements of the company’s business and its position within the agricultural market. The $45 price target reflects the firm’s analysis of the company’s financial prospects and its strategic investments.

In other recent news, The Andersons, Inc. reported fourth-quarter earnings that surpassed analyst expectations, with adjusted earnings per share of $1.36 compared to the projected $1.02. The company also reported revenue of $3.12 billion, exceeding the anticipated $2.8 billion. For the quarter ending December 31, 2024, net income attributable to the company was $45.1 million, or $1.31 per diluted share. The Trade segment achieved record fourth-quarter pretax income of $54 million, largely due to strong elevation margins and space income from an early and robust harvest. The Renewables segment reported pretax income of $25 million, benefiting from efficient plant performance despite lower ethanol prices. In other developments, Andersons Inc. announced the upcoming retirement of Christine M. Castellano, Executive Vice President, General Counsel, and Corporate Secretary, effective April 18, 2025. The company has not yet disclosed a successor for Castellano’s role. These updates reflect The Andersons’ recent strategic and financial activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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