Raising ADM FVE to $67 on Improved Near-Term Outlook; Shares Slightly Overvalued

Archer-Daniels Midland reported strong second-quarter results as adjusted segment operating profit was up nearly 60% year over year. While profits increased across all segments versus the prior year's quarter, the majority of growth was driven by the ag services and oilseeds business. During the quarter, this business benefitted from favorable grain merchandising conditions and higher soy crush margins. As a result of the strong quarter, we have raised our forecast for the year to incorporate higher profits that we had previously forecast.