Goldman Sachs Defends CF Industries (CF), Reiterates Top Rating

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Goldman Sachs is out in defense of CF Industries (NYSE: CF) following Friday's 7% sell-off on the back of Q1 earnings, which easily beat the Street but invoked frustration over a lack of buybacks in the quarter and a lack of detail on buybacks to come.

The firm reiterated their Conviction Buy list rating and price target of $225.

While there is no material change to the operating outlook, Goldman tweaked 2012/2013/2014 estimates to $22.50/$22.14/$22.41 from $22.75/$21.52/$21.76 to reflect the delayed timing of the $2bn buybacks they anticipate in 2012.

"While we empathize with shareholder anxiety over capital deployment, we encourage investors to stay focused on the bigger picture and we reiterate our CL-Buy," the analyst said. Q1 resulted demonstrate strong fundamentals, cash generation is very powerful and they do not envision any other significant uses of cash beyond buybacks and to a lesser extent dividends.

For an analyst ratings summary and ratings history on CF Industries click here. For more ratings news on CF Industries click here.

Shares of CF Industries closed at $183.91 yesterday, with a 52 week range of $115.34-$203.32.

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