Julia Rizzo, an analyst from Morgan Stanley, maintained the Hold rating on Adecoagro SA (AGRO – Research Report). The associated price target remains the same with $13.00.
Julia Rizzo’s rating is based on a combination of factors that reflect both the challenges and opportunities facing Adecoagro SA. The company has shown resilience in a difficult year marked by declining prices and variable weather conditions, managing to achieve a solid performance with a record sugar mix and reduced production costs. Despite these improvements, the company’s hedging strategy for 2025 shows a slower start compared to the previous year, with sugar hedges at prices below those of FY2024.
Additionally, while Adecoagro has made progress in its soybean and corn hedging, the overall financial results for FY2024 were mixed. The adjusted EBITDA for the farming segment remained flat year-over-year due to lower yields and higher costs, although the outlook for 2025 appears more positive. The company’s sugar and ethanol volumes increased, benefiting from premium pricing, yet high inventory levels remain a concern. These factors contribute to the Hold rating, indicating a balanced view of the company’s current position and future prospects.
According to TipRanks, Rizzo is a 2-star analyst with an average return of -4.6% and a 20.00% success rate.