Easing farm gloom to help Syngenta, says UBS

UBS analysts have raised their target on Syngenta stock to SFr320, and made it one of their "key calls", citing the prospect of a share buyback and dissipating gloom over Europe's wheat sector.
UBS said it was restating "with good conviction" its "buy" recommendation on shares in the Swiss herbicides and seeds business, which have eased since hitting a 16-month high of E294 at the end of last month.

However, while the note initially fostered a 2.2% rise in the shares, they closed down 1.0% atSFr282.90 amid a widespread weakening of stock markets after disappointing results from US metals giant Alcoa, and further signs of monetary tightening by China.

Furthermore, the investment bank said its case rested in part on "marginally bullish" data for corn prices in Tuesday's monthly US report on global crop supply and demand report.

In fact, the USDA unexpectedly raised its estimate for American corn production in 2009-10, sending prices of the grain down by the exchange limit in Chicago.