| Videos | Channels | Search |
Why Monsanto is sowing the seeds of its future
Agricultural giant Monsanto will maintain its competitive advantage according to research company Morningstar. Equity analyst Jeff Stafford says the stock is fairly priced with good future potential.
Having essentially created the biotech seed market decades ago, Stafford says that Monsanto is operating in the industry with a wide economic moat, that’s to say it has a significant competitive edge over its peers.
Stafford also points out that over the years, Monsanto has consistently poured more money into R&D spending than competitors, allowing the firm to maintain its edge. He also sees Monsanto's more conventional seed and breeding operation as vital to the company's competitive advantage.
The equity analyst says that year-in and year-out, Monsanto modifies its genetic material to produce seeds that deliver more yield than the competition. Already DuPont and Syngenta have chosen to license the firm's next-generation soybean technology, as opposed to competing head-to-head.
Stafford believes Monsanto looks fairly valued, and a company that investors should keep an eye on if the stock price were to drop.
01:43 minutes
Tags: agricultural commodities, agriculture, bio tech, bio technology, biotech, dupont, economic, equities, equities 2014, equity, equity market, equity rise, gm, investors, monsanto, morning star, morningstar, research, saxo, saxo bank, saxo tv, soy, soy beans, soya, soyabeans, soybean crop, soybean crops, soybeans, stock, stock market, stocks, syngenta, tradingfloor.com, yield, yields