Swiss banking and asset management group Syz recommends investors to buy shares in farm chemicals maker Syngenta or sell Syngenta equity “put” options ahead of the company’s first quarter trading update on April 18.
Syngenta’s shares have fallen about 6.5 percent from a 2013 high of 416 Swiss francs since mid-March, but Syz says traders should take advantage of this “price correction” to buy into the stock.
It adds that forecast-beating results from rival Monsanto earlier this month also augurs well for Syngenta, which predicted another year of record sales in February.
“Syngenta can generate double digit EPS growth, supported by high farmer profitability and returns from its research pipeline/innovative farmer solutions,” Syz writes in a research note.
Syz has a 450 Swiss franc ($480) price target on Syngenta, whose shares are flat at 389.1 Swiss francs on Friday.
Syz also recommends selling “put” options - which are used to bet on a stock price fall in the future - on Syngenta, writing that these offer a 3 percent yield on “puts” due to mature in June with a strike price of 380 francs.
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$1 = 0.9293 Swiss francs