Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - JPMorgan has assumed coverage on Archer Daniels Midland (NYSE:ADM), a prominent food products company with a $28.8 billion market cap, with a Neutral rating and a price target of $61.00, up from the previous target of $48.00. According to InvestingPro data, the stock currently trades at $59.96, with analysts’ targets ranging from $48 to $70.
The investment bank expects ADM’s earnings to benefit from improved margins in the Crushing and Nutrition segments over the coming year, potentially exceeding current market estimates, particularly in the Crushing segment.
Despite these positive factors, JPMorgan identifies persistent pressures in the Refined Products and Other segments as offsetting concerns.
The firm also expressed uncertainty about whether the Ag Services segment will rebound to the extent ADM anticipates, especially if U.S. trade tensions do not ease.
While JPMorgan’s earnings per share estimates for ADM exceed the Bloomberg consensus for 2026 and 2027, the firm indicated it does not see sufficient upside potential in the share price to warrant a more positive rating at this time. InvestingPro’s Fair Value analysis suggests the stock is slightly undervalued, with 10+ additional exclusive insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Archer Daniels Midland (ADM) reported its second-quarter earnings for 2025, achieving an adjusted earnings per share (EPS) of $0.93, which exceeded the forecasted $0.80. However, the company fell short of revenue expectations, posting $21.17 billion compared to the anticipated $21.81 billion. ADM’s Board of Directors declared a quarterly cash dividend of 51 cents per share, marking 93 years of consistent payments. UBS raised its price target for ADM to $70 from $60, maintaining a Buy rating, citing strong crush spread margins and improvements in the nutrition business. UBS also adjusted its earnings per share estimates upward, projecting a 2025 EPS of $3.93. Barclays (LON:BARC) upgraded ADM from Underweight to Equalweight, increasing its price target to $61 from $50, due to enhancements in the Nutrition segment and a recovering crush outlook. The Decatur East plant, which had faced extended downtime, is now back online, eliminating previous cost headwinds. These developments reflect ADM’s ongoing strategic focus on innovation and market optimization.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.