Morgan Stanley Lowers Estimates as Archer Daniels Midland Company Completes F3Q12 Guidance

Despite what appears to be a fallen quarter for Archer Daniels Midland (NYSE: ADM), Morgan Stanley reported a more favorable F13 as US crops increase in size, SA continues to have production issues, we see an improvement in oilseeds and Ethanol spot margins increase.

Morgan Stanley continued, “We are lowering our F3Q12 EPS from $0.68 to $0.61 and our F2012 EPS from $2.50 to $2.40. However, we expect EPS to recover to $3 in F13, implying P/E of 10.6x F13 EPS versus the 14x historical average.”

The market closed yesterday at $30.83 per share as Morgan Stanley maintained a PT of $37 and an Overweight rating.