BMO Capital Raises Andersons Price Target to $75, Citing Renewable Profit Surge
BMO Capital raised Andersons’ price target to $75 from $65 and kept an Outperform rating, highlighting record Q4 EPS from Renewables profitability and lower expenses that offset an Agribusiness slowdown. The company now fully owns four ethanol plants and will expand its Clymers, Indiana facility by 30 million gallons starting 2027.
1. Price Target Increase
BMO Capital lifted its Andersons price target to $75 from $65 while maintaining an Outperform rating. The analyst pointed to record fourth-quarter earnings momentum driven by strong Renewables segment profitability and disciplined expense management.
2. Q4 Performance Drivers
Andersons delivered record Q4 EPS as its Renewables division posted heightened profitability and overall expenses declined, which offset weaker results in Agribusiness. Management highlighted a stronger fall harvest in the Western Grain Belt, record export volumes, steady ethanol demand and above-average crop yields.
3. Ethanol Ownership and Expansion
The company now fully owns four ethanol plants and plans to boost production by 30 million gallons at its Clymers, Indiana facility starting in 2027. Additional investments include infrastructure upgrades at the Port of Houston, expansion of a Carlsbad mineral processing plant and increased corn and wheat processing capacity.