Benchmark Launches Buy Rating, $75 Target for The Andersons, Highlights $60M Ethanol Expansion
Benchmark initiated coverage of The Andersons with a Buy rating and $75 price target, citing strong ethanol segment momentum and easing agribusiness headwinds. The company plans a $60 million ethanol plant expansion in Clymers, Indiana, to add 30 million gallons capacity by mid-2027 and finish Houston terminal upgrades in 2026.
1. Coverage Initiation
On February 5, Benchmark initiated coverage of The Andersons with a Buy rating and set a $75 price target, highlighting strong ethanol segment momentum and improving agribusiness conditions.
2. Growth Outlook
The company targets $7.00 EPS run-rate by exit 2028, representing a 36% CAGR from $2.56 per share over the trailing twelve months ended September 30, 2025, based on strategic investments.
3. Key Investments
Plans include a $60 million expansion at the Clymers, Indiana ethanol plant to add 30 million gallons of capacity by mid-2027 and expansion of the Port of Houston export terminal, scheduled for completion in 2026 to boost grain and soybean meal exports.