Analyst Julia Rizzo from Morgan Stanley maintained a Hold rating on Adecoagro SA (AGRO – Research Report) and keeping the price target at $13.00.
Julia Rizzo has given her Hold rating due to a combination of factors surrounding Adecoagro SA’s recent developments. The company’s board has approved a tender offer from Tether at $12.41 per share, which is expected to lead to Tether holding a controlling stake of approximately 70%. This significant change in ownership structure is likely to reduce the liquidity of the stock as the free float decreases to 30%.
While the tender offer price is attractive, being the highest adjusted for dividends, it remains slightly below the price target of $13. The future appreciation of Adecoagro’s shares will largely depend on the strategic directions taken by the new controlling group. Despite the potential positive reaction to the announcement, the valuation metrics such as the discount to NAV and the EV/EBITDA ratio suggest a balanced risk-reward scenario, justifying the Hold rating.
According to TipRanks, Rizzo is ranked #6466 out of 9406 analysts.