Analyst Julia Rizzo from Morgan Stanley maintained a Sell rating on Adecoagro SA and decreased the price target to $9.50 from $10.00.
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Julia Rizzo’s rating is based on a combination of factors affecting Adecoagro SA’s financial outlook. The company is facing significant challenges due to adverse weather conditions, including a dry summer followed by heavy rainfall and frost, which have negatively impacted sugarcane yields and disrupted the harvest. This has led to a reduction in crushing volumes and a decline in sugar and ethanol production, putting pressure on the company’s revenues.
Additionally, the company’s farming operations in Argentina are under strain, with lower prices for rice and peanuts offsetting any yield recovery. The financial impact is further compounded by soft margins and increased corporate expenses following a recent acquisition. As a result, Julia Rizzo has revised the FY25 EBITDA forecast down by 18.4%, indicating a weaker financial performance than previously anticipated, which supports the Sell rating for Adecoagro SA’s stock.
AGRO’s price has also changed slightly for the past six months – from $10.070 to $9.390, which is a -6.75% drop .