JPMorgan Raises ADM Price Target on Improving Biofuels Outlook

Archer-Daniels-Midland Company (NYSE:ADM) is included among the Dividend Kings and Aristocrats List: 32 Biggest Stocks.

JPMorgan Raises ADM Price Target on Improving Biofuels Outlook

On March 24, JPMorgan raised its price recommendation on Archer-Daniels-Midland Company (NYSE:ADM) to $65 from $61. It maintained an Underweight rating on the shares. The firm said it increased estimates and targets across the agricultural products group, pointing to an improving industry backdrop. The analyst noted that the Environmental Protection Agency’s proposed renewable volume obligations for 2026 would “mandate a significant step up” in biofuels requirements and are expected to take effect on January 1. JPMorgan added that stronger demand, along with recent geopolitical disruptions, is pushing margins higher for biofuels producers and oilseed processors.

During its Q4 2025 earnings call, Archer Daniels Midland said it expects adjusted EPS for 2026 to come in between $3.60 and $4.25. Chairman and CEO Juan Luciano shared the company’s outlook, while CFO Monish Patolawala said earlier policy clarity could open up more opportunities in what he described as a more constructive operating environment. He also said the company plans to stay disciplined on capital allocation, with a focus on generating strong cash flow and continuing cost reductions.

Management expects to deliver total cost savings of $500 million to $750 million over a three- to five-year period starting in 2025. For 2026, ADM plans capital expenditures of about $1.3 billion to $1.5 billion. In the first quarter, crush margins are expected to remain in line with the fourth quarter of 2025. The Nutrition segment is also expected to improve both year over year and sequentially.

Archer-Daniels-Midland Company (NYSE:ADM) operates as a global agricultural supply chain manager and processor. The company focuses on food security by linking local demand with global capabilities, while also providing human and animal nutrition products.

While we acknowledge the risk and potential of ADM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Dividend Stocks to Buy for Steady Income and 14 Under-the-Radar High Dividend Stocks to Buy Now

Disclosure: None. Follow Insider Monkey on Google News.