Update shared on27 Aug 2025
Fair value Increased 2.28%The analyst price target for Archer-Daniels-Midland has been raised to $58.30, reflecting early stabilization in Nutrition, a more favorable Ag Services outlook, improved execution, and an expected Q2 EBITDA beat, partially offset by weaker North American crush margins.
Analyst Commentary
- Early signs of stabilization in the Nutrition segment are emerging.
- A more constructive backdrop in Ag Services is expected to drive upside.
- Improved execution and increased policy visibility support a higher valuation.
- Expected Q2 EBITDA forecast ($916M) is set to beat consensus estimates by 6%.
- Anticipated weaker crush margins in North America partially offset bullish factors.
What's in the News
- ADM entered a production partnership with OCOchem to build a demonstration plant co-located at ADM's Decatur, Illinois corn processing complex, utilizing OCOchem's Carbon FluX Electrolyzer to convert biogenic CO2 from ethanol production into value-added formate molecules.
- The collaboration aims to support ADM's industrial carbon management and sustainable molecule production strategies, targeting existing and emerging applications such as crop protection, fertilizers, water treatment, and industrial solvents with carbon-negative products.
- OCOchem's technology uses the world’s largest gas diffusion electrode and advanced electrochemical processing, offering high efficiency and zero waste, with product selectivity and productivity.
- ADM did not repurchase any shares in the period from April 1 to June 30, 2025, and has completed its buyback program with a total of 185,235,951 shares (33.03%) acquired for $10,122.9 million since November 2014.
Valuation Changes
Summary of Valuation Changes for Archer-Daniels-Midland
- The Consensus Analyst Price Target has risen slightly from $57.00 to $58.30.
- The Consensus Revenue Growth forecasts for Archer-Daniels-Midland has fallen from 2.5% per annum to 2.3% per annum.
- The Future P/E for Archer-Daniels-Midland has risen slightly from 15.29x to 15.71x.
Disclaimer
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