Nutrien will take potash market share from Russia, Belarus - Berenberg

Intrepid Potash

25/03/2022 14:16

(Updates)
    ** U.S. shares of Canada-based Nutrien  NTR.N , the world's
biggest fertilizer producer, rise 1.9% to a fresh record high of
$108.84  urn:newsml:reuters.com:*:nL3N2VR3GU
    ** Canadian shares also hit all-time highs after climbing
1.8% to C$136.25, while rivals Mosaic  MOS.N  and CF Industries
 CF.N  gain 2.5% and 1.9%, respectively
    ** Brokerage Berenberg raises NTR's PT to $120 from $90,
reiterates "buy" rating
    ** Estimates sanctions on Russia and its ally Belarus in
response to Moscow's invasion of Ukraine put at risk nearly 40%
of full-year global shipments of potash, a key input in
fertilizers
    ** NTR said last week it is boosting its potash capacity to
15 mln tonnes this year as fertilizer shortages threaten food
supply  urn:newsml:reuters.com:*:nL3N2VK04F  urn:newsml:reuters.com:*:nL2N2VI30O
    ** Berenberg sees capacity ramp up to 18 mln tonnes per
annum by 2025; says co has been "very patient in deploying its
underutilised potash capacity in Canada" and sees another volume
increase announcement in Q4
    ** Expects NTR's free cash flow to remain strong, allowing
co to execute its 10% buyback and pursue retail acquisitions
    ** Grain traders Archer Daniels Midland  ADM.N  and Bunge
 BG.N  also rally to new records
    ** NTR has gained 42.1% this year through last close, with
most of the surge happening after the Ukraine crisis started

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INSIGHT-As sanctions bite Russia, fertilizer shortage imperils
world food supply     urn:newsml:reuters.com:*:nL2N2VI30O
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 (Reporting by Ruhi Soni in Bengaluru;)
 ((Ruhi.Soni@thomsonreuters.com;
Twitter: https://twitter.com/ruhithere;))