Biotech Values

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Monsanto no longer a Conviction Buy at Goldman after acquisition
Monsanto (MON -0.3%) is pulled from the Conviction Buy list at Goldman Sachs after its dilutive acquisition of Climate Corporation, as MON believes the deal will be $0.14 dilutive to 2014 EPS.The firm still rates MON a Buy but with a reduced price target of $118, down from $124, and lowers its FY 2014 EPS from $5.54 to $5.46 to account for the company's weaker than expected 2013 base, not yet including the acquisition.Deutsche Bank lifts its price target to $120 from $116, however, as the Climate Corp. acquisition leaves MON "well positioned to address agriculture's next major growth frontier: the use of data to optimize farmer decision making and drive incremental yield."