Deutsche Bank Cuts Corn Products to Hold
Deutsche Bank cut its investment recommendation on Corn Products (CPO ) to hold from buy, after the company cited lower operating profits coming from U.S. operations and an increase in its estimated effective tax rate.
Analyst Christina McGlone said she believes a new era of high energy/natural gas prices requires more management direction and accountability. She thinks uncertainty surrounding Canadian import duties hampers the ability to forecast. She believes a Mexico recovery is fully discounted in the stock, and turnaround in the US/Canadian business is uncertain at this point. She cut her $1.38 2005 earnings per share estimate to $1.18, and her $1.70 2006 estimate to $1.30.