UBS reiterates Buy rating on Archer Daniels Midland stock with $70 price target

Investing.com - UBS maintained its Buy rating and $70.00 price target on Archer Daniels Midland (NYSE:ADM) stock on Thursday. The food products giant, with $82.78 billion in revenue, has shown strong momentum with a 30.55% price return over the past six months. According to InvestingPro analysis, ADM is currently trading below its Fair Value.

UBS analyst Manav Gupta cited potential policy tailwinds for ADM, though current policy uncertainty is restraining orders and margins in the agricultural processing sector. The company’s resilient business model is evidenced by its impressive 50-year streak of consecutive dividend increases, as highlighted by InvestingPro.

The firm noted that ADM is well-positioned to increase soybean oil supply to meet potential higher demand from biodiesel and renewable diesel producers in 2026, should a significant market shift occur.

UBS highlighted that current soybean meal demand remains robust, with strong pricing supporting higher soybean crush margins for the company.

The analysis also indicated that if D4 Renewable Identification Number (RIN) prices increase, ADM would have flexibility to price its soybean oil more competitively in the market.

In other recent news, Archer Daniels Midland (ADM) has achieved its 2025 regenerative agriculture goal a year ahead of schedule by engaging over 5 million acres in sustainable farming practices. This accomplishment surpasses the company’s previous target of 3.5 million acres. UBS has raised its price target for ADM to $70, maintaining a Buy rating due to strong crush spread margins and improvements in the nutrition business, with 2025 earnings per share estimates increased to $3.93. Meanwhile, Barclays upgraded ADM from Underweight to Equalweight, raising the price target to $61, citing enhancements in the Nutrition segment and a recovering crush outlook. The Decatur East plant is now operational after downtime, expected to remove a $20-$25 million quarterly cost headwind by the fourth quarter. JPMorgan has assumed coverage with a Neutral rating and a price target of $61, anticipating earnings benefits from improved margins in the Crushing and Nutrition segments. Additionally, ADM declared a quarterly dividend of 51 cents per share, marking 93 years of consistent payments. These developments highlight ADM’s ongoing strategic efforts and financial performance improvements.

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