Monsanto Company (MON) is a leading global provider of agricultural products to farmers. The company’s pipeline of agricultural biotechnology products stands unmatched in the industry.
However, an intense competitive environment and the company’s huge dependence on a few large customers present a risk to its top-line. Monsanto also faces foreign currency risk since a significant portion of its income comes from outside the U.S.
We are downgrading our recommendation on the stock from Neutral to Underperform based on weak results for two consecutive quarters. We believe this will continue on the basis of the guidance provided by management for fiscal 2010.Zacks Investment Research
