Key Highlights:
- Archer Daniels Midland (ADM, Financial) plans to close its Kershaw soybean processing facility in South Carolina as part of a strategic cost-cutting initiative.
- Analysts provide a cautious outlook on ADM stock, with a consensus "Hold" recommendation.
- GuruFocus estimates a significant potential upside for ADM, suggesting a higher fair value than the current market price.
Archer Daniels Midland (ADM) has announced the impending closure of its soybean processing plant in Kershaw, South Carolina, slated for this spring. This decision comes as the company implements a cost-reduction strategy. Notably, the Kershaw facility is the smallest among ADM's U.S. soybean operations. Its closure reflects broader industry challenges, including uncertainties in the biofuel sector.
Analyst Price Targets and Recommendations
Nine analysts have provided one-year price targets for Archer-Daniels-Midland Co (ADM, Financial), with an average target price of $49.67. The forecasts range from a high of $56.00 to a low of $45.00, suggesting a potential upside of 3.28% from the current market price of $48.09. For more detailed projections, visit the Archer-Daniels-Midland Co (ADM) Forecast page.
The consensus recommendation from 12 brokerage firms for Archer-Daniels-Midland Co stands at 3.2, which indicates a "Hold" status. The rating scale used ranges from 1 (Strong Buy) to 5 (Sell), placing ADM squarely in the middle.
GuruFocus Valuation Insights
According to GuruFocus estimates, the GF Value for Archer-Daniels-Midland Co (ADM, Financial) in the next year is projected to be $76.92. This valuation suggests a substantial upside of 59.95% from the current trading price of $48.09. The GF Value represents GuruFocus' assessment of the stock's fair value based on historical trading multiples, past business growth, and future performance estimates. For more detailed insights, refer to the Archer-Daniels-Midland Co (ADM) Summary page.
