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Morgan Stanley Says ADM Delivered Solid Results but Risks Remain
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. With a YTD Return of 31.9% as of May 7, Archer-Daniels-Midland Company (NYSE:ADM) is included among the 10 Best Stocks to Buy to Beat the S&P 500. On May 7, Morgan Stanley raised its price recommendation on Archer-Daniels-Midland Company (NYSE:ADM) to $58 from $54. It reiterated an Underweight rating on the shares. The firm said ADM delivered “solid results,” but its cautious stance remains tied to a preference for the company-specific opportunity at Bunge (BG). The analyst also pointed to risks at ADM that could limit upside to earnings growth. During the Q1 2026 earnings call, Juan Luciano, Chairman, CEO, and President of ADM, said the company reported adjusted earnings per share of $0.71 and total segment operating profit of $764 million for the quarter. He added that trailing four-quarter adjusted return on invested capital was 6.4%, while cash flow from operations before working capital changes reached $442 million. Luciano said market conditions improved for ADM’s biofuels-related businesses during the quarter. According to him, the crushing and ethanol segments benefited from a stronger commodity and margin environment. He also noted that soybean crush and ethanol margins improved significantly as markets anticipated the finalization of renewable volume obligations for 2026 and 2027. Luciano announced that ADM had raised its earnings outlook for 2026. The company increased its full-year adjusted EPS guidance range to $4.15-$4.70 from the previous range of $3.60-$4.25. Archer-Daniels-Midland Company (NYSE:ADM) is a global agricultural supply chain manager and processor. The company provides food security services and operates in both human and animal nutrition markets. While we acknowledge the potential of ADM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Value Stocks to Buy in 2026 According To Warren Buffett and 10 Best Performing Dividend Stocks So Far in 2026 Disclosure: None. Follow Insider Monkey on Google News.
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