Agrium (AGU) produces and distributes all three NPK (nitrogen, phosphorous, and potassium) fertilizers. However, unlike PotashCorp (POT) and Mosaic (MOS), the company has a huge retail network in the United States.
Agrium is pending a merger with PotashCorp, which is slated to be completed in the next year. Agrium is expected to report its 4Q16 earnings on February 9, 2017.
Let’s look at analysts’ recommendations and their price target for Agrium over the next 12 months.
As of January 23, 2017, seven of the 19 analysts covering Agrium have given the stock either a “strong buy” or a “buy” recommendation. Ten analysts have given it a “hold” recommendation, and one has recommended a “sell” over the next 12 months. There were no “strong sell” recommendations.
But analysts’ ratings could change if new information about the company’s future cash flow potential becomes available. We’ll update you on this each month.
For the next 12 months, Wall Street analysts have given Agrium a price target of $102.40. Like some of the other stocks we’re covering in this series, on January 23, 2017, Agrium closed above its next 12-month price target at $105.15, a rise of 2.7%.
If we look at the above graph and compare Agrium to PotashCorp and Mosaic, we see that most analysts have a “hold” recommendation on these companies (MXI).
Next, let’s take a look at CF Industries (CF) to see if this trend will continue.