ADM - Archer-Daniels-Midland: Agriculture Giant With Limited Near-Term Upside

2024-06-03 01:13:54 ET

Summary

• Archer-Daniels-Midland is one of the largest agricultural supply chain managers, having a well-established position in the industry.
• The company faced short-term challenges such as the agricultural product prices normalizing and an investigation into its accounting practices, which led to the CFO resigning.
• I believe pricing will continue to be a headwind in the short term and the long-term outlook is not attractive due to declining sweetener usage and the potential impacts of the weight-loss drugs.
• That is why I reiterate my "Hold" rating for ADM stock.

Investment Thesis

I discovered Archer-Daniels-Midland ( ADM ) a few months ago. It came up on my screen thanks to its improving profitability and health balance sheet. I initiated my coverage on the company back in January....

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