Deutsche Upgrades Corn Products

Analyst Christina McGlone sees long-term profits for the industrial food manufacturer in its U.S. biz and growth prospects in South America, Asia, and Africa

Deutsche Bank upgrades Corn Products International (CPO ) to buy from hold.

Analyst Christina McGlone says her sources suggest that selected Mexican bottlers are using high fructose corn syrup (HFCS). She notes a consolidated and rational industry is a positive for long-term profits in U.S. business and growth prospects in South America and Asia/Africa remain strong.

McGlone raises her $3.07 2005 earnings per share estimate to $3.12. She maintains her $3.74 2006 earnings per share estimate, but says it could prove low.

She notes the stock is at 17.7 times p-e on her 2005 estimate, 11.1 times EBIT, and 7.6 times EBITDA. She raises her $59 target to $62.

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