Citi cuts Yara to 'neutral' as fertiliser prices set to normalise

Yara International ASA

12/05/2026 14:47

** Citi cuts Norwegian fertiliser producer Yara YAR.OL to "neutral" from "buy", saying normalising prices and valuations aligned with historical levels limit upside, even as the company remains a hedge against prolonged supply disruptions

** "Under our base-case scenario, in which prices normalize by year-end, we do not see material upside to consensus forecasts," Citi says, as it lifts its price target by 23% to NOK 530, broadly in line with the current share price

** The broker adds that while "Indian demand remains supportive, high prices have begun to curb consumption with delayed purchases and Chinese exports presenting downside risks"

** Citi also says that although 2026 valuation metrics look "optically" inexpensive, the shares trade at around 6 times mid-cycle EBITDA, in-line with historical averages

** Out of 22 analysts covering Yara, three rate it 'buy' or 'strong buy', 15 rate it 'hold' and four 'sell', LSEG data shows

 (Reporting by Alexander Klyve Gudbrandsen)

 ((alexanderklyve.gudbrandsen@thomsonreuters.com))