- Fertilizer producers’ estimates and stock price targets are raised at Stifel by analyst Vincent Anderson on a "de-risked" price forecast for all three major nutrients.
- Anderson expects continued caution regarding expectations for an immediate and lasting rebound in prices but sees higher multiples on fertilizer companies because significant downside corrections are less likely in the current crop price and currency environment.
- Nutrient affordability is particularly supportive of potash and phosphate consumption, while elevated energy prices, if sustained, should partially offset downside risk in nitrogen from new capacity additions, the analyst says.
- Anderson recommends Nutrien (NYSE:NTR) among major North American fertilizer producers, rating the stock a Buy with a $60 price target; he also raises targets for CF Industries (NYSE:CF) to $43 from $37 previously, and Mosaic (NYSE:MOS) to $32 from $28.
- Source: Bloomberg First Word
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