Piper Sandler expects USDA's report to reshape agricultural sector in 2025

LSB Industries

13/01/2025 11:21

** Brokerage Piper Sandler says recent World Agricultural
Supply and Demand Estimates (WASDE) report from the U.S.
Department of Agriculture (USDA) produced a constructive data
for the agricultural sector going into 2025
    ** Brokerage adds the significant shift in its agricultural
outlook is driven by substantial adjustment to the estimates for
the recently harvested crops, especially corn and soybeans
    ** Brokerage expects reasonable upside value over the next
12 months for agri companies
    ** "Due to the seasonal nature of agriculture, with
significant price and volume activity in the first half of the
year, much of the potential share movement could take place
between now and June or July" - Piper Sandler
    ** Brokerage upgrades CF Industries  CF.N , Nutrien  NTR.N ,
LSB Industries  LXU.N  to "overweight" from "underweight";
Mosaic  MOS.N  to "neutral" from "underweight"
    Brokerage raises price target on the following firms:
 Company               New PT      Old PT      Upside to
                                               stock's
                                               last close
 CF Industries  CF.N   $105        $79         18.3%
 Nutrien  NTR.N        $58         $50         19.7%
 Mosaic  MOS.N         $30         $26         20.8%
 LSB Industries        $11         $9          47.8%
  LXU.N                                        
 

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))