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Mosaic +2.5% as J.P. Morgan upgrades on positive phosphate price outlook

Published 02/21/2018, 08:11 AM
© Reuters.  Mosaic +2.5% as J.P. Morgan upgrades on positive phosphate price outlook
  • Mosaic (NYSE:MOS) +2.5% premarket after J.P. Morgan upgrades shares to Overweight from Neutral with a $30 price target, up from $26, citing positive phosphate price dynamics..
  • JPM analyst Jeffrey Zekauskas sees positive sector fundamentals after MOS reduced phosphate production in the U.S. through plant idling; India, a large importer of phosphates, has low inventories, which may lift demand, he says.
  • The analyst notes an apparent export issue in China, and if the trend continues, annual production from China could decrease as much as 3M tons, which would tighten the 65M-ton phosphate market.
  • Zekauskas also expects MOS’s free cash flow generation to increase to 6.1% of its share price for 2019, from 3.6% for 2018.
  • Now read: The Mosaic Company 2017 Q4 - Results - Earnings Call Slides


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