Mosaic (MOS) released its 2Q17 earnings on August 1, 2017, and reported EPS (earnings per share) of $0.28, which beat analysts’ estimate of $0.25. However, as a result of a weak outlook, the stock fell 7.0% during the trading session after the earnings were announced. You can read more about Mosaic’s 2Q17 earnings at How Mosaic Fared in 2Q17 amid Continued Fertilizer Price Weakness.
Mosaic has been one of the worst performers among agricultural fertilizer companies (MOO) with a YTD (year-to-date) loss of 33.0%.
As of August 18, 2017, the mean consensus analyst rating for Mosaic (MOS) stock was 3.1 with a “hold” recommendation for the stock in the next 12-month period. Of the 19 analysts surveyed by Reuters, only one had a “strong buy” recommendation, and only one had a “buy” recommendation for the next 12 months.
Given the weak outlook for phosphate fertilizers, a majority of analysts have maintained a “hold” recommendation on the stock, as we saw for PotashCorp (POT) and Agrium (AGU) in the earlier parts of this series.
However, unlike these stocks, more analysts (five) have a “sell recommendation for Mosaic for the next 12-month period.
Following the company’s earnings release, the consensus price target for Mosaic was expected to face downward pressure. As of August 18, 2017, the consensus analyst price target for Mosaic was $24.80, which was lowered from $26.10 a month ago.
The current consensus price target was almost 24.8% higher than the closing price of $19.80 on August 18.
Next, let’s take a look at CF Industries (CF).