Goldman Sachs Downgrades Mosaic (MOS) to Sell

January 22, 2014 6:44 AM EST
Get Alerts MOS Hot Sheet
Price: $31.28 +3.40%

Rating Summary:
    6 Buy, 16 Hold, 10 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Goldman Sachs downgraded Mosaic (NYSE: MOS) from Neutral to Sell with a price target of $41.00 (from $35.00) as they maintained a cautious coverage view on Fertilizer stocks underpinned by a negative outlook for corn and soybean prices over the next 12 months that will pressure farmer economics and 2015 acreage potential.

"We believe the market is overly focused on a near-term bottom in international K pricing and is overly optimistic on 2H14 and 2015 pricing potential given our expectation for limited improvement in industry operating rates in 2015-2016 and the impact of rising North American production on premium domestic pricing," analyst Adam Samuelson states.

He added, "With MOS currently discounting $360-$370/mt K prices in 2015, in our view, and down only -8% from the break-up of BPC in late July, we believe shares already reflect an overly optimistic medium-term price recovery given our S/D forecasts."

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

Shares of Mosaic closed at $48.32 yesterday.

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