Citigroup (NYSE:C) upgraded fertilizer company Mosaic (NYSE:MOS) from "Hold" to "BUY," citing improving conditions around a Florida lawsuit and the possibility of a higher bid by BHP (NYSE:BHP) for Potash Corp. (NYSE:POT).
The lawsuit is in relationship to a phosphate mine in Hardee County, Florida, which had a court issue a preliminary injunction against them, forbidding them to mine at this time.
Mosaic requested a stay on the order, which allow portions of the mine to be operational in 2011.
Citigroup analyst P.J. Juvekar said it's possible a ruling could be more favorable than that, and could be more long term for Mosaic. That would allow them to produce phosphate at lower prices.
The other factor is the potential acquisition of Potash Corp. by BHP Billiton, which will probably result in a higher bid by BHP for the fertilizer giant. That should result in a good boost for Mosaic when it happens.
Mosaic closed at $67.12, gaining $2.75, or 4.27 percent. Citigroup increased their price target on Mosaic from $64 to $78.
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