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Seaford, Delaware | Monsanto could continue to struggle: report
NEW YORK
Monsanto Company
MON.N
$59.16
+0.07+0.12%
12:00am EDT
(Reuters) - Monsanto Co (MON.N) shares could continue to struggle in the short term, following a recent drop, and investors might consider exiting the stock for now, Barron's said in its May 10 edition.
Some noxious weeds have developed a resistance to Monsanto's "Roundup" brand of herbicide the seed engineering company sells, and the cost of using supplementary herbicides has prompted Monsanto to offer rebates to affected farmers, the financial weekly said.
Monsanto's stock currently trades at about 18.6 times projected 2010 earnings but is only a bargain by historical standards, Barron's wrote, given that generic competition has led to lower herbicide prices.
Barron's wrote that Monsanto had priced new seeds "too richly" and argued that this year's harvest would be a better time to assess the company's prospects.
(Reporting by Phil Wahba; editing by Gunna Dickson) | |
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Build up of Round up
