Tuesday, November 2, 2010

Mosaic (NYSE:MOS), CF (NYSE:CF) Will Benefit from Fertilizer Price Increases says Barclays (NYSE:BCS)

The increase in the price of corn and soybeans has been a gamechanger in the fertilizer industry, and Barclays (NYSE:BCS) sees CF Industries (NYSE:CF) and Mosaic (NYSE:MOS) benefiting strongly from it.

Barclays expects and especially strong move from CF Industries, raising their price target on them from $105 to $130 over the next year, and for Mosaic, they raised the price target on them from $60 to $69.

For CF, Barclays sees them driven by higher raising nitrogen prices, increasing estimates for CF from $264 a ton to $296 a ton and its 2011 estimate from $257 to $288. The firms 2010 average phosphate price estimate was increased from $410 to $494 and its 2011 estimate raised from $408 to $474.

Concerning phosphate prices for Mosaic, Barclays boosted their 2011 and 2012 phosphate price estimate from $451 and $433 to $480 and $476.

CF closed Monday at $121.39, losing $1.14, or 0.93 percent. Mosaic closed down at $72.33, falling $0.83, or 1.13 percent.

No comments: