Syngenta a Global Agri-Biz Play

Syngenta AG (SYT - Snapshot Report) is a global provider of agribusiness products and solutions. The company's major products include herbicides, insecticides and fungicides, and field crop, vegetable and flower seeds.

We remain buyers of Syngenta after the company's third quarter results. Sales for the third quarter 2008 increased 12% to $2.8 billion at constant exchange rates (CER) were 6% higher reflecting the relative weakness of the US dollar.

We revise our target price down to $55, as global risk premiums rise. The depth of its product mix, robust business model and highly regarded management team support our positive view on the stock. We believe Syngenta is one of the safest plays in the sector, which should be reflected in higher valuations.

For the full year 2008, the company continues to target double digit growth in earnings per share but the CFO warned that EBITDA margin in Seeds is expected to be lower than 2007 (9%) due to unfavorable mix due to lower sales in GM soy seeds. Anyway, Syngenta hopes to maintain a price increase of 3% for the full year.

Read the full analyst report on SYT