Agribusiness Stocks: November Post-Earnings Update

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Part 4
Agribusiness Stocks: November Post-Earnings Update PART 4 OF 9

Analysts’ Upgrades for Mosaic after Its 3Q17 Earnings

Mosaic’s earnings

Mosaic (MOS) released its earnings on October 31, 2017. It reported an adjusted EPS (earnings per share) of $0.43, which beat analysts’ estimate of $0.18 for the quarter. Mosaic’s adjusted EPS rose 30% YoY (year-over-year) from $0.33 per share. Following the company’s earnings, the stock rose almost 9.5% as of November 10. Peers (XLB) like CF Industries (CF), PotashCorp (POT), and Agrium (AGU) have been trading in negative territory since their respective earnings.

Mosaic’s 3Q17 earnings weren’t enough to reverse the company’s poor performance this year. As of November 10, the stock was ~22% lower year-to-date.

To learn how Mosiac performed in 3Q17, read Mosaic Shares Pop on 3Q17 Earnings.

Analysts&#8217; Upgrades for Mosaic after Its 3Q17 Earnings

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Analysts’ ratings

As of November 10, the consensus mean rating of 19 analysts for Mosaic stood at 2.8 with an overall “hold” recommendation. The rating changed from 3.0 and a “hold” in October.

In the above chart, you can see that more analysts are becoming bullish on the stock. In the current month, two analysts have a “strong buy” recommendation on the stock—up from one a month ago. Meanwhile, two analysts maintained their “buy” recommendation.

Most of the analysts continued to have a “hold” recommendation. However, the number of analysts with this recommendation fell from 13 to 12 in the current month. Two analysts continued to have a “sell” recommendation on Mosaic, while none of the analysts recommended a “strong sell.”

Target price

The current consensus mean target price for Mosaic stood at $25.3, which rose from $24.3 in our October update. When we compare the target price with the November 10 market closing price of $22.3, we get an upside of almost 10%—provided that the market price converges with the target.

Following Mosaic’s earnings, RBC raised its target price to $24 from $22. BMO also raised its target price to $24 from $23, while Citigroup raised its target price from $23 to $25.

In the next part, we’ll discuss analysts’ ratings for CF Industries.


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