BNP Exane Paribas upgrades Yara to 'neutral' on better agriculture fundamentals

Yara International ASA

14/02/2025 13:21

** BNP Exane Paribas raises Norway's Yara  YAR.OL  to
"neutral" from "underperform", saying the fertilizer producer's
agriculture fundamentals are "seemingly slightly better"
    ** With the stock trading around five-year average EBITDA
multiples, the broker sees less scope for downside
    * "A major attraction of the stock has been management's
willingness to return capital to shareholders around a clear
ND/EBITDA target framework," BNP Exane says, but adds that
uncertainty around the blue ammonia projects in the U.S. reduce
this clarity on capital allocation in the near term  
    ** Following an improvement in crop prices and nitrogen
fertiliser spreads since the start of the year, the broker
updated its 2025/26 EBITDA estimates to $2.09 billion/$2.17
billion and free cash flow expectations to $183 million/$562
million for Yara

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))