Multinational food processing company Archer-Daniels-Midland (ADM) announced that it has entered into a definitive agreement to acquire Sojaprotein, a leading European provider of non-GMO soy ingredients. The terms of the deal have not been disclosed so far.
Following the news, shares of the company gained marginally to close at $58.44 in the extended trading session.
With this acquisition, ADM is expected to strengthen its position in the meat alternative space and have a foothold in the European market. The company will also gain access to Sojaprotein’s extensive offerings in non-GMO vegetable protein ingredients.
The President of Global Foods at ADM, Leticia Gonçalves, said, “The addition of Sojaprotein — the largest producer of plant-based protein in southern Europe — adds production capacity in addition to an impressive network of customers who are leading the way in meeting consumer needs for nutritious and responsible plant-based foods and beverages.” (See ADM stock chart on TipRanks)
Recently, Jefferies analyst Robert Dickerson reiterated a Hold rating on the stock with a price target of $55. The analyst’s price target implies downside potential of 5.9% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 7 Buys and 4 Holds. The average ADM price target of $69.50 implies 18.9% upside potential.
ADM scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 38.7% over the past year.
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