Goldman Sachs Stays Bullish on CF, Tepid on Other Fertilizer Names (CF, POT, AGU)

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Analysts at Goldman Sachs on Friday offered some continued bullish commentary on several major fertilizer makers.

The firm noted that "Industry fundamentals have turned significantly more favorable since the last round of updates, with exceptional pricing gains in nitrogen ( N ) and tentative signs of a recovery in phosphate ( P ) and potash ( K ) materializing."

The firm maintained CF Industries Holdings, Inc. ( CF ) on its "Conviction Buy List," saying it sees 10% to 15% upside in the shares because of positive nitrogen pricing trends.

The analyst rates Potash Corp. ( POT ) as "Neutral" and noted it expects a small earnings miss in the first quarter. Still, the market already expects the miss and so downside could alreay be priced in.

Goldman said it remains "Neutral" on Agrium Inc. ( AGU ), expecting a small upside to its current valuation. However, the firm cut its first quarter estimates on weak potash sales.

The Bottom Line
Shares of CF Industries ( CF ) have a .85% dividend yield, based on last night's closing stock price of $188.89. The stock has technical support in the $170-$180 price area. The shares are trading near all-time highs. Shares of Potash Corp ( POT ) have a 1.29% dividend yield, based on last night's closing stock price of $43.50. The stock has technical support in the $39-$40 price area. If the shares can firm up, we see overhead resistance around the $47-$50 price levels. Shares of Agrium ( AGU ) have a .52% dividend yield, based on last night's closing stock price of $86.38. The stock has technical support in the $75-$80 price area. If the shares can firm up, we see overhead resistance around the $90-$93 price levels.

None of the dividend stocks mentioned in this article are currently recommended by Dividend.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AGU , CF , K , N , P

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