- Credit Suisse (SIX:CSGN) analyst John Roberts initiated coverage of Mosaic Co (NYSE: MOS) with an Outperform rating and a price target of $60, implying an upside of 37%.
- The analyst mentions that MOS is not exposed to the hydrocarbon-based nitrogen market. Roughly ~40% of 2022e EBITDA is from phosphate, in which supply growth is decelerating.
- He added that MOS also has 50%+ of sales in Brazil, the fastest growing large fertilizer market.
- Roberts states that the other large global producers are Saudi Arabia and China. Morocco is the lowest cost producer and expands regularly.
- MOS operates the largest wholesale fertilizer distribution business in Brazil, with domestic phosphate and potash capacity and shares in Canpotex potash exports from Canada to Brazil, notes the analyst.
- According to Roberts, key risks to the downside include farmers delaying potash and phosphate applications to “mine the soil,” lower farm income from a more rapid recovery in Ukraine grain output, and faster recovery in Russia/Ukraine potash supplies.
- Price Action: MOS shares are trading lower by 5.81% at $43.62 on the last check Thursday.
- Photo Via Company
| Mar 2022 | Piper Sandler | Maintains | Overweight | |
| Mar 2022 | HSBC | Downgrades | Buy | Hold |
| Mar 2022 | Stifel | Maintains | Hold |
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