Susquehanna took aim at the fertilizer industry, initiating coverage on Mosaic Co. (NYSE:MOS), Agrium (NYSE:AGU), and Intrepid Potash (NYSE:IPI).
On Mosaic, they were started off with a "Positive" rating, with a price target of $76 on them.
Susquehanna noted that Mosaic is the largest producer of phosphate in the world, and second in the world for potash. They believe the potash segment of the company is underestimated by investors.
For Agrium, coverage also launched with a "Positive" rating, with a 12-month price target of $96 on them.
Susquehanna especially likes the diversity of the company, and considers them one of the better ways to get exposure to increasing healthy agricultural fundamentals.
They said, Agrium the "most diversified way to gain exposure to rapidly improving agricultural fundamentals."
Along with fertilizer, Agrium is also a top U.S. distributor of seeds and chemicals for crop protection.
Intrepid Potash has coverage initiated with a "Neutral," mostly on concerns over their ability to compete because of the regional focus of the business, which is a strength and weakness.
The strength of being a regional company is the ability to deliver potash a lower cost to local markets. But their weakness is the potential strategies of their larger competitors to go head to head in pricing if they choose.
They have a price target on the company of $26.
Susquehanna expects Intrepid Potash to increase by 94 percent its 2011 potash segment EBITDA, with estimates they'll rise as high as $164 million.
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