Fertilizer stocks to see continued upward momentum - Merrill Lynch
Thursday, April 03, 2008; Posted: 01:03 PM
Fertilizer stocks will see continued upward momentum amid surging phosphate and potash prices, Merrill Lynch said Thursday.
In a note to clients, analyst Don Carson raised estimates and price objectives for Potash Corp. of Saskatchewan, Mosaic Co., Agrium Inc. and CF Industries Holdings Inc. He placed a buy rating on all four stocks, as well as Terra Industries Inc., a nitrogen fertilizer producer.
Carson said the recent pullback in the fertilizer sector is a buying opportunity and that the peak for earnings per share for fertilizer producers is likely still a couple of years away.
He noted that with the exception of Terra Industries, his 2008 and 2009 earnings-per-share estimates were roughly 50% above consensus because of accelerated price momentum for phosphate and potash.
The greatest risk to the stocks would be a pullback in grain prices, he said. Potash has the best long-term fundamental outlook of the three primary fertilizer nutrients, with strong demand growth likely to continue.
The Market Vectors Agribusiness ETF (MOO) was up 3.7% at $56.01 on volume about 50% higher than the 30-day daily average.
Among the ETF's more heavily weighted components, Mosaic shares jumped 8.1% to $108.26, and Potash Corp. shares rose about 4.3% to $168.10, down from an earlier intraday record high of $169.33.
Agrium shares climbed 6.2% to $66.63, CF Industries shares rose 8.6% to $115.02, and the stock of Terra Industries rose 3.3% to $37.37.
Brigid Gaffikin bg/jw
- Forums
- ASX - By Stock
- AEV
- fertilizer to see continued upward momentum
fertilizer to see continued upward momentum
-
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AEV (ASX) to my watchlist
|
|||||
Last
0.9¢ |
Change
0.000(0.00%) |
Mkt cap ! $21.14M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 2248004 | 1.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.8¢ | 200000 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 2248004 | 0.010 |
4 | 281110 | 0.009 |
6 | 5183244 | 0.008 |
2 | 7635000 | 0.007 |
10 | 4784442 | 0.006 |
Price($) | Vol. | No. |
---|---|---|
0.008 | 200000 | 2 |
0.009 | 1420203 | 6 |
0.010 | 1384585 | 4 |
0.011 | 323409 | 2 |
0.012 | 2245770 | 4 |
Last trade - 12.51pm 25/07/2024 (20 minute delay) ? |
Featured News
AEV (ASX) Chart |
Day chart unavailable