Wall Streets analysts’ ratings
Earlier in this series, we saw that Morgan Stanley downgraded Mosaic (MOS) to “equal-weight” from “overweight” on March 16 with a price target of $29. What’s the consensus rating and price target on the stock?
Out of the 21 analysts surveyed by Bloomberg, eight analysts or 36%, had a “buy” rating on Mosaic while 50% have a “hold” rating. Only 14% of the surveyed analysts had a “sell” rating on the company. More analysts have a “hold” rating for the company. The trend is similar for Potash Corporation (POT) and Israel Chemicals (ICL).
For the next 12 months, analysts’ consensus estimates for Mosaic stand at $28.3. This is below its closing price of $29.1 on March 16. With the consensus already around ~$28 price levels, Morgan Stanley’s revised price target of $29 seems to have caught up with the consensus. Potash Corporation also closed below its 12-month price target at $17.4 on the same day. Agrium closed at $93. It was above its 12-month price target.
To access some of the above-mentioned companies, you might consider the SPDR S&P North American Natural Resources ETF (NANR). It invests 12% in agricultural chemical companies.
For more updates on fertilizer companies, please visit Market Realist’s Agricultural Fertilizers page.