Mosaic (MOS) Reducing Estimates, Raising PT - PiperJaffray

PiperJaffray analyst, Brett Wong, cut estimates on Mosaic (NYSE: MOS) following a weaker than expected 2Q guide and full-year downward revision to nutrient sales volumes as the fertilizer market continues to be challenging with lower prices weighing on margins.

The analyst is modeling FY16 EPS at $1.25, while FY17 EPS estimate moves lower to $2.00 on both lower sales volumes and pricing, partially offset by lower input costs. However, the price target moves to $24 using 12x FY17 EPS vs the previous 10x FY17. The reason for the multiple increase was the lack of visibility into when a turn will occur.

The firm reiterated a Neutral rating and raised its price target to $24.00 (from $22.00).

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 $27.11 yesterday.

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