Archer Daniels cut to Underperform at BofA on ‘soured’ profitability outlook

BofA analyst Salvator Tiano downgraded Archer Daniels (ADM) to Underperform from Neutral with a price target of $54, down from $63. The outlook for profitability has “soured considerably over the past few months” given increased macro risks stemming from the U.S. election as well as the company’s own performance, the analyst tells investors. While the firm recognizes that a lot of risks, such as biofuel policy, should be priced in, but it sees limited upside to the shares as it lowered its 2025 EPS estimate to $4.75 from $5.25.