SLCJY - Adecoagro Benefiting From Past Investments And A Tight SEE Market
- Adecoagro is looking to leverage stronger prices for sugar, ethanol, row crops, and rice, as adverse weather in Brazil and other growing regions has driven attractive prices.
- Frost has impacted Adecoagro's sugarcane crop, but so far the impact seems less severe than for other producers.
- Management has finished up a multiyear capex program that has expanded the company's production capabilities in sugar, ethanol, row crops, rice, and dairy, and at attractive incremental costs.
- Adecoagro shares are trading below their historical forward EV/EBITDA range of 5x to 6x, and offer attractive upside if management can leverage these higher commodity prices.
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Adecoagro Benefiting From Past Investments And A Tight SEE Market