Earlier in this series, we discussed analysts’ recommendations and price targets for PotashCorp (POT).
In this article, we’ll discuss the same for Agrium (AGU), which is close to merging with PotashCorp.
Like PotashCorp, analysts’ recommendations for Agrium for the next 12 months have remained unchanged month-over-month. Of the 18 analysts surveyed by Reuters, only two analysts have “strong buy” recommendations on the stock for the next 12 months, and five analysts have “buy” recommendations on the stock.
Ten analysts have “hold” recommendations on the stock, while only one analyst has a “sell” recommendation on the stock for the next 12 months. Let’s take a look at the changes in the stock’s price target.
On April 10, 2017, the consensus price target for Agrium for the next 12 months stood at $108.8 per share. This price had been revised slightly downward from the previous month’s target of $109.2 per share. On the same day, Agrium stock closed at $93.9 per share, a discount of ~13.7% to its target price.
The earnings season is fast approaching, and agribusiness companies (SOIL) such as CF Industries (CF) and The Mosaic Company (MOS) are set to report their earnings in late April and early May. These earnings reports should provide us with a more accurate picture of the agribusiness environment, and they may prove to be catalysts for their stocks. Agrium will report its earnings on May 2, 2017.
In the next article, we’ll discuss analysts’ recommendations for Mosaic.