Wednesday, November 3, 2010

Agrium (NYSE:AGU) Downgraded on Valuation after 3-Month Rise in Share Price

After rising over 33 percent over the last three months, Agrium's (NYSE:AGU) valuation seems to be strongly reflecting the value of the company, and Chardan downgrading them to "Neutral," citing valuation as their reasoning behind the move.

The actual ongoing run-up in share price started in July, when the company was valued at just under $50 a share, and stand today at over $87 a share.

Some of this was from increasing corn and soybean prices, but also the bid by BHP Billiton (NYSE:BHP) for Potash Corp. (NYSE:POT), which tended to offer support for the overall industry, and increase other potential takeover rumors as well.

Agrium closed Tuesday at $87.22, dropping $1.16, or 1.31 percent.

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