CF Industries Holdings Inc (NYSE: CF) got some rating fertilizer from JPMorgan (NYSE:JPM) and shares in the company soared.
JPMorgan upgraded CF from a "Neutral" rating to an "Overweight" rating, placing a price target of $170 on the fertilizer company.
The overall sector received a boost, which also helped CF, as Citibank (NYSE:C) said they see the industry being able to successfully raise fertilizer prices, which will also help CF competitors Potash Corp. (NYSE:POT), Agrium (NYSE:AGU) and Mosaic (NYSE:MOS).
For CF specifically, JPMorgan said the positive outlook for the agriculture sector and the healthy cash flow of CF is the catalyst behind their upgrade.
Higher crop prices should stimulate the fertilizer sector and open farmers' wallets without too much trepidation.
CF Industries closed Monday at $147.75, soaring $8.69, or 6.25 percent.
No comments:
Post a Comment