Piper Sandler cuts PT on agri-chemical companies amid tariff uncertainty

CF Industries Holdings

27/03/2025 15:59

** Piper Sandler reduces PT on agricultural commodities traders to reflect market uncertainty tied to potential tariffs and trade retaliation

** Brokerage says key risk is largely macro related and would be tied to the possibility of retaliatory tariff on U.S. agricultural products, especially from China

** Adds that another risk would be large corn and soybean crop in U.S. and/or Brazil, which would reduce grain prices and fertilizer affordability

** Expects sizable gain in U.S. corn planting in near-term to between 93 mln and 95 mln acres, increase of between 2.5% and 10.5% on prior planting level

** "This would clearly imply a substantive increase in nutrient demand, especially for nitrogen products like ammonia, urea," brokerage says

Brokerage cuts price target on the following firms:

Company
New PT
Old PT
Upside/downside to stock's last close
CF Industries CF.N
$110
$115
43.5%
Mosaic MOS.N
$30
$33
10.6%
LSB Industries LXU.N
$10
$12.25
46.4%
Nutrien NTR.TO
$60
$63
16.8%

 (Reporting by Pooja Menon in Bengaluru)

 ((Pooja.Menon@thomsonreuters.com;))