Adecoagro downgraded to Neutral at Citi on valuation

As previously reported, Citi analyst Gabriel Barra downgraded Adecoagro (AGRO) to Neutral from Buy with a price target of $15, up from $13. The firm is citing higher urea prices and better ethanol prices than previously expected in the near term due to the higher energy prices along with supply disruptions related to the conflict in Middle East in its price target raise. Citi adds however that after the recent stock performance – up 83% year-to-date – and given the unattractive yields/multiples, the stock has priced in a better scenario.