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(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Analyst calls on Tuesday include an upgrade to a little-known agriculture stock. Bank of America raised its rating on Adecoargo to buy , with its price target pointing to more than 26% upside. The bank said shares should benefit from a potential economic shift in Argentina after the country’s recent presidential election. To be sure, there were also some downgrades. Piper Sandler cut its rating on Albemarle to underweight from neutral, citing lithium pricing pressures. Check out the latest calls and chatter below. 5:36 a.m. ET: Piper Sandler downgrades Albemarle on global lithium price declines Analyst Charles Neivert lowered his rating on Albemarle to underweight from neutral, citing a “substantial deterioration” in global lithium markets. He also slashed his price target by $12 to $128, which implies shares. “It is our belief that the market conditions now present will undermine any significant rebound in the pricing environment for at least the next few quarters, leading to further earnings erosion and estimate reduction,” Neivert wrote in a Tuesday note. “By virtue of their contract structures for lithium products, [Albemarkle] will likely experience significant revenue and earnings degradation in 4Q23 and further declines into 2024.” Neivert pointed out that the lithium carbonate price in China has fallen by almost 50% during the fourth quarter, and that the U.S. and Europe have also seen similar declines in terms of magnitude and value. Weaker near- and mid-term outlook for lithium markets will particularly affect batteries and electric vehicles, he said. Shares of Albemarle, the world’s largest lithium producer, have dropped 44.7% this year. Shares are down 2.5% in early trading Tuesday. — Pia Singh 5:36 a.m. ET: Bank of America upgrades Adecoagro to buy BofA raised its rating on Latin American agriculture stock Adecoagro to buy from neutral and increased its price target on U.S.-listed shares to $14 from $12.50 per share. The new forecast implies upside of nearly 27%. The company plants, harvests and sells products such as grains, rise and sugarcane. Year to date, shares have rallied 33.1%, though they have lost more than 3% to start December. AGRO YTD mountain AGRO in 2023 “We are more constructive on Adecoagro … as: (1) we estimate 28% EBITDA growth in 2024 (excluding land sale in 2023) to US$552mn, half of it driven by much better yields in Argentina, and half by sugarcane crushing volumes, cost dilution and higher sugar and ethanol prices in USD terms; (2) the stock is still trading at an attractive valuation at 13.7% [free cash flow] yield in 2024E and 17% in 2025E; and (3) upside risks depending on the economic developments in Argentina post elections,” wrote analyst Isabella Simonato. “After the presidential elections in Argentina in early November, BofA economists forecast significant devaluation of the Argentine peso in 2024-25,” the analyst added. “A weaker peso is positive for Adecoagro since half of the company’s costs for the crop business are in USD (agricultural inputs mainly) and 100% of revenues are in USD.” — Fred Imbert
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