BMO Capital Markets reported on Tuesday that it has raised its rating on phosphate producer, Mosaic Co (MOS).
The firm has upgraded MOS from a “Market Perform” to an “Outperform,” and had increased the company’s price target from $61 to $72. This price target suggests a 14.5% upside from the stock’s current price of $61.50.
An analyst from the firm noted, “raising our rating ahead of FQ3/13 (Feb) results on March 28, for which we expect MOS to miss consensus EPS of $0.88 (we model $0.75), but believe investors will be focused on the outlook and Mosaic’s share buyback potential. … The trade is turning toward potash and phosphate producers (POT and MOS), both with strong incremental capital return theses, versus nitrogen producers (CF, YAR and AGU) from weakening urea/ammonia sentiment and higher gas prices. The end of May is nearing, when MOS can start negotiating with Cargill shareholders to repurchase shares.”
Mosaic shares were up 39 cents, or 0.63% during premarket trading Tuesday. The stock has increased 10% in the past year.
The Bottom Line
Shares of Mosaic Co (MOS) have a 1.63% yield, based on Monday’s closing price of $61.50.
Mosaic Co (MOS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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