Mizuho Reiterates Neutral Rating on CF Industries (CF)

Mizuho analyst Edlain Rodriguez reiterated a Neutral rating and $86.00 price target on CF Industries (NYSE: CF).

The analyst commented: "CF hosted an investor day in NYC today. Highlights include: 1) Nitrogen supply/demand dynamics should remain tight as global demand growth outpaces supply growth; 2) CF’s Blue Point low-carbon ammonia project will be online in 2029 and demand outstrips capacity; 3) Mid-cycle EBITDA of $2.5B (near 2024-2025 level) should grow to $3B by 2030; 4) Share repurchase is #1 priority for free cash flow. Since 2010, CF has reduced its share count by 56%.

Our View. We remain Neutral on the fertilizers as we believe the lack of momentum in corn prices will make it challenging for fertilizer prices to continue to move higher and be affordable. With limited prospects for higher fertilizer prices, it will prove challenging for earnings to move up materially and this lack of earnings growth will weigh on sentiment. We believe most of the good news is already reflected in the fertilizer stocks."

For an analyst ratings summary and ratings history on CF Industries click here. For more ratings news on CF Industries click here.

Shares of CF Industries closed at $94.68 yesterday.

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