Agrium (AGU) Stock Could Fall if JANA Decides to Unload, Warns Analyst

April 10, 2013 10:17 AM EDT
Get Alerts AGU Hot Sheet
Price: $105.19 +4.04%

Rating Summary:
    14 Buy, 15 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Cowen today maintained a Sell rating on Agrium (NYSE: AGU) with a price target of $88.00. Yesterday investors learned JANA failed in its efforts to replace members of the company's board of directors.

Commenting on the news, analyst Ahmed Alamin said, "The big question remains whether Jana will maintain its ~7.5% stake in the company or unload its shares. Though Jana stated that it is not their intention to go away any time soon, if the fund chooses to unload shares, we would expect downward pressure on Agrium stock."

Alamin's Sell thesis is based on the idea that nutrient capacity increases and lower corn pricing will result in challenging industry fundamentals.

For an analyst ratings summary and ratings history on Agrium (NYSE: AGU) click here. For more ratings news on Agrium click here.

Shares of Agrium closed at $95.04 yesterday.

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