Brazil, China Top MON Growth List - Analyst Blog
August 08 2011 - 4:00AM
Zacks
Agri Business giant,
Monsanto Company (MON) laid out new five-year
strategic plan with an outlook for strong international revenue
growth, targeting Brazil and China.
Brazilian government regulation,
public and private investment in agriculture as well as farming
population drives Monsanto to target the world’s key
soybean-producing and the second-largest exporter country, for
improving their efficiency, while enhancing yield.
Monsanto’s sales in Brazil totaled
$1.066 billion in 2010, which was about 10% of total revenue. With
the intention of a stronger growth and business generation,
Monsanto has been expanding its Brazilian research teams, adding
sales staff as well as developing products, aimed at Brazilian
farmer needs.
The company is planning to launch a
new genetically altered soybean seed, "Intacta", designed to resist
Brazilian caterpillar pests and tolerate treatment of herbicide.
This product is uniquely developed for a non-U.S. market expected
to commence in fiscal 2013.
Monsanto also lists China as one of
its top growth target based on rising incomes and surging demand.
The ongoing alliance with the Chinese chemicals conglomerate
Sinochem Corp, is anticipated to design and launch hybrid corn seed
and tap the rapidly growing Asian corn market.
The risk of strict foreign
investments limitations in China however remains a concern for the
company. Moreover, the Chinese counterfeit seed producers are
stepping up production trying to jump-start a homegrown
agrotechnology. Monsanto thus plans for a longer term investment in
Chinese Agri market.
Mention may be made of U.S, wherein
Monsanto has already planted its strong footprint and aims
diversification and growth going forward.
Missouri-based Monsanto Company,
together with its subsidiaries, is a leading global provider of
agricultural products for farmers in the United States and
internationally. Monsanto's biotechnology research and rich product
pipeline provides market leadership above its peers, such as
Syngenta AG (SYT), The Scotts Miracle-Gro
Co (SMG), The Dow Chemical Company (DOW),
BASF SE (BASFY.PK).
We currently maintain a long-term
Outperform recommendation on the stock. Monsanto has a Zacks #2
Rank, which translates into a short-term Buy rating (1-3
months).
DOW CHEMICAL (DOW): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
SCOTTS MIRCL-GR (SMG): Free Stock Analysis Report
SYNGENTA AG-ADR (SYT): Free Stock Analysis Report
Zacks Investment Research
Dow (NYSE:DOW)
Historical Stock Chart
From May 2024 to Jun 2024
Dow (NYSE:DOW)
Historical Stock Chart
From Jun 2023 to Jun 2024