Adecoagro downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Adecoagro (AGRO) to Underweight from Equal Weight with a price target of $10, down from $13. The firm cut estimates after incorporating a higher holding discount on likely future lower share liquidity and a lack of visibility. Despite quality assets, healthy free cash flow and a solid balance sheet, Adecoagro shares are unlikely to outperform without clarity on controlling shareholder’s intentions, the analyst tells investors in a research note. Morgan Stanley anticipates a set of weak results ahead on the back of uneven weather affecting both cane yields and crops and downside pressure to ethanol prices.