Replies to post #167441 on Biotech Values

[dav1234]

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."

[DewDiligence]

A major impetus for MON’s acquisition of The Climate Corporation (#msg-92619988) is (IMO) to have a marketing edge of DuPont, Syngenta, and other seed competitors.

Whether or not global warming is actually affecting farmer’s yields to a material degree, a significant number of farmers believe that it is. Hence, it’s useful for MON to have another arrow in the quiver when its seed sales reps visit customers to discuss their orders for the next growing season.

MON can now say, “We’re addressing Global Warming through the advanced analytics furnished by The Climate Corporation, and no one else in the business can match that.” It ought to be a strong pitch.

[DewDiligence]

(MON/DE)—New technology enables growers to plant crops precisely at warp speed:

#msg-103577111