Archer Daniels Midland downgraded by Morgan after analyst describes ag division business model as “a black box”

In Illinois, shares in Archer Daniels Midland dropped after a research analyst described the mechanism by which the company churns out profits in its agricultural operations as a “black box”. The company increased profits by $143 million in the agricultural services division, based on increases in international shipping charges and gains from hedging strategy. Barclays Capital analyst Christopher Bledsoe questioned how the gains would be sustainable, causing JP Morgan to downgrade the stock to “Neutral” from “Overweight”. Analysts have puzzled over ADM stock, which is up over the past six months while its competitive group has fallen by an average of 55 percent in share value, according to the Motley Fool.

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