- Archer Daniels Midland (ADM, Financial) is closing its domestic trading operations in China as a cost-cutting measure.
- Analysts have provided a one-year price target for ADM, indicating a potential upside of 7.69%.
- The GF Value estimate suggests a significant upside potential of 66.25% for ADM shares.
Archer Daniels Midland Co. (ADM), a key player in the agricultural sector, is undertaking strategic changes to streamline operations. This includes the closure of its domestic trading business in China, affecting 40-50 jobs. This decision is a component of ADM's overarching strategy to reduce costs in response to declining profits influenced by lower crop prices, inflation, and ongoing U.S.-China trade tensions. Notably, ADM shares saw a modest increase of 1.3% following this announcement, reversing a recent downtrend.
Wall Street Analysts' Projections
For investors gauging the future of Archer-Daniels-Midland Co. (ADM, Financial), insights from nine analysts place the average one-year price target at $50.00. This projection ranges from a high of $56.00 to a low of $45.00, hinting at a potential upside of 7.69% from its current trading price of $46.43. For more detailed projections, visit the Archer-Daniels-Midland Co (ADM) Forecast page.
Examining broader market sentiments, the consensus from 12 brokerage firms positions Archer-Daniels-Midland Co. as a "Hold" with an average recommendation score of 3.3. The metric uses a scale from 1 to 5, where 1 represents a "Strong Buy," and 5 indicates a "Sell."
Additionally, according to GuruFocus estimates, Archer-Daniels-Midland Co. (ADM, Financial) has an estimated GF Value of $77.19 in one year. This estimation indicates a substantial potential upside of 66.25% from its current price of $46.43. The GF Value is GuruFocus's calculated fair value based on the stock's previous trading multiples, historical business growth, and projected future performance. More comprehensive data and insights can be accessed on the Archer-Daniels-Midland Co (ADM) Summary page.
