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Analysts’ Recommendations and Price Targets for CF Industries

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Nov. 20 2020, Updated 3:35 p.m. ET

Analysts’ recommendations

On March 21, 2017, of the 18 analysts surveyed by Reuters, one had a “strong buy” recommendation on CF Industries (CF), while five had “buy” recommendations on the company for the next 12 months. Eleven analysts had “hold” recommendations on the stock, while only one had a “sell” recommendation on the stock.

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Peer comparison

Like CF Industries, PotashCorp (POT), Agrium (AGU), and The Mosaic Company (MOS) also have most analysts recommending “holds.” Read more about these companies’ recommendations and price targets in March Update: Agribusiness Stock Recommendations, Price Targets. 

Because analysts’ recommendations and price targets change frequently as new information becomes available, Market Realist makes an updated report available each month.

Price target

The consensus price target for CF Industries on March 21, 2017, stood at $33.35 per share for the next 12 months. This price was ~9.7% higher than the company’s closing price of $30.4 on the same date. Analysts’ price target reached a low of $25.2 in August 2016, when expectations for agribusiness environment were at a low point.

Summary

CF Industries continues to hold a strong position in the North American nitrogen fertilizer sector (SOIL). The company enjoys low-cost natural gas and is strategically situated to fulfill customer demand while minimizing transportation costs. Its strategy is evident in its relatively high margins compared to its peers and Chinese producers, who sell at or below cost.

An improvement in nitrogen prices should boost CF, but a sideways or downward movement in prices will likely continue to pressure the company’s performance.

For more information on the agricultural fertilizer industry, be sure to visit Market Realist’s Agricultural Fertilizers page.

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