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Agrium’s Price Target Cut to $104.4 Post-Earnings

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Agrium

Unlike PotashCorp (POT), Agrium’s (AGU) performance failed to impress investors (XLB). The company reported earnings per share (or EPS) of -$0.08, missing analysts’ consensus EPS estimate of -$0.06 for the quarter.

The company’s earnings also fell year-over-year compared to $0.02 in 1Q16. However, keep in mind that most of Agrium’s sales take place in its second quarter.

Agrium is expected to complete its pending merger with PotashCorp by the end of this year provided the deal passes through the antitrust authorities in the respective countries (MOO).

Read more about Agrium’s 1Q17 earnings in How Agrium Performed in 1Q17.

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Analysts’ recommendations

Much like PotashCorp, analysts’ recommendations for Agrium have remained unchanged month-over-month. Two analysts have maintained “strong buy” recommendations, and five have maintained “buy” recommendations on the stock for the next 12 months. Ten analysts have maintained “hold” recommendations, and one has a “sell” recommendation on the stock.

Price target

Agrium’s price target for the next 12 months has been revised downward month-over-month to $104.4 per share from $107.5. This change reflects a 13.6% upside on the stock compared to its May 10 closing price of $91.9.

In contrast to PotashCorp and Agrium, recommendations for CF Industries (CF) and The Mosaic Company (MOS) have changed. We’ll discuss these changes in the coming articles.

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