Monsanto shares fall after warning glyphosate weakness

Shares of Monsanto Co. fell after the worlds largest seed maker warned of weakness in its glyphosate business, prompting analysts to trim 2010 profit estimates.

Monsanto shares fell $2.95, or 3.5 percent, to $81.07 in morning trading.

On Thursday the St. Louis-based company kicked off its fourth annual Whistle Stop tour in Iowa, where it told investors that its 2010 outlook for glyphosate, a common pesticide, could face pressure, given its higher inventory, prompting an analyst to lower his 2010 profit estimate for Monsanto.

Sterne Agee analyst Mark Connelly cut his 2010 earnings forecast to $4.20 per share, from $4.65 per share.

The market has mostly expected a profit drop in glyphosate near-term, in our view, but worried that lower grain prices and competition would keep seed pricing under pressure as well, Connelly said.

As glyphosate accounts for well under 15 percent of Monsantos stock value, Connelly maintained a Buy rating, with a price target of $110.

Deutsche Bank analyst David Begleiter reduced his 2010 profit estimate to $4.15 per share from $4.35 per share, but said the current stock level is attractive given the companys strongest-ever seeds and traits pipeline and that its new SmartStax corn platform is on-track for 2010. Begleiter held to his Buy rating and $100 price target.