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Market Update (NYSE:MON): Bayer’s Monsanto approach sparks shareholder uproar

[Reuters] – Bayer’s (BAYGn.DE) takeover approach for U.S. rival Monsanto (MON.N) triggered an investor backlash on Friday, with one of the German pesticides and drugs company’s top shareholders calling it “arrogant empire-building”. Investors are nursing losses after an 8.2 percent fall in Bayer’s share price following news of its bid, which John Bennett of Henderson Global Investors, described as an “immediate destruction” of shareholder value. U.S. seeds giant Monsanto on Thursday said Bayer had made an unsolicited takeover proposal in a bid to create the world’s biggest agricultural supplier. Read more on this. Monsanto Company (MON) , valued at $44.70B, opened this morning at $99.95. A quick look at the market, the company’s stock traded between $99.94 and $102.42 and has traded between $81.22 and $121.09 over the past 12 months. MON shares are currently priced at 21.67x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 11.74x earnings multiple. And for those looking to make a return holding the stock, the company pays shareholders $2.16 per share annually in dividends, yielding 2.20%. According to a consensus of 19 analysts, the earnings estimate of $2.38 per share would be $0.01 worse than the year-ago quarter and a $0.08 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $4.64, which would be a $1.09 worse when compared to the last year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $4.47 Billion. If reported, that would be a 2.40% decrease over the year-ago quarter. More recently, Citigroup downgraded MON from Buy to Neutral (Mar 14, 2016). Previously, Goldman downgraded MON from Neutral to Sell. The average price target for MON shares by the analysts covering it is $97.82, which is 2.13% below where the stock opened. See more in (NYSE:MON) Similar Articles: Market Update: Monsanto Company (NYSE:MON) – Argentina farmers ask state to intervene in Monsanto soy fight Stock Update: Monsanto Company (NYSE:MON) – Monsanto to pay $80 million in SEC settlement over Roundup earnings Market Update: Monsanto Company (NYSE:MON) – Farmers to Gain Access to Monsanto’s Roundup Ready 2 Xtend™ Soybeans in 2016
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