Analyst Note
| Seth Goldstein, CFA |Archer Daniels Midland delivered strong first-quarter results as operating profits were up 86% versus the prior-year quarter due to profit growth in all segments, highlighted by roughly 5.5 times higher profits in the crushing business. While we had expected its results would reflect the favorable agribusiness conditions, we have increased our near-term outlook to account for higher ag services and oilseeds segment profits. Our long-term outlook is unchanged. Having updated our model, we raise our fair value estimate for the firm to $49 per share from $46. Our no-moat rating is unchanged.