Mosaic down after RBC downgrades to "sector perform", cuts PT

Alpha MOS SA

03/10/2022 11:49

** Fertilizer maker Mosaic Co  MOS.N  down 1.2% at $47.77
premarket
    ** RBC Capital Markets analyst Andrew Wong downgrades MOS to
"sector perform" from "outperform", cuts PT to $65 from $85
    ** Also lowers estimates for adj. EPS, adj. EBITDA and FCFPS
for 2022-24
    ** Brokerage says though overall fertilizer markets still
remain tight, its preference has shifted to nitrogen - and
potash-based fertilizer makers over phosphate ones
    ** Adds that MOS' phosphate operations have under-produced
historical levels by 10%-15% due to various issues, including
Hurricane Ida, raw material shortages, and logistics delays
    ** However, brokerage still maintains positive outlook for
phosphate markets given high crop prices, ongoing Chinese export
restrictions, and limited new supply
    ** Brokerage raises rating and PT of nitrogen-based
fertilizer maker CF Industries  CF.N ; CF up 1.4%  urn:newsml:reuters.com:*:nL4N3141NO
    ** MOS has gained 23% YTD through last close, while CF has
gained 36%
 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))