ADM shares set to rally almost 20%: BMO

Archer-Daniels-Midland Co. (ADM) signage displayed on the side of a grain storage bin at an ADM grain elevator in Niantic, Illinois.
Daniel Acker | Bloomberg | Getty Images

Shares of Archer Daniels Midland could be set to rally in the second half of the year as the agricultural producer increases its international presence and value investors step in to buy the beaten-down stock, BMO Capital Markets told clients on Tuesday.

"Fundamentals likely will reach a nadir in 2Q16 and begin to vastly improve in FY2H16, while ADM's portfolio reshaping and internal initiatives should create more stable growth," BMO analyst Kenneth B. Zaslow wrote in a research note, upgrading the name to outperform from market perform.

As the main catalysts that could take the stock higher, Zaslow notes: