Piper Jaffray Cuts Price Target on The Mosaic Company (MOS) as Nutrient Prices Continue to Drop

Piper Jaffray maintained a Neutral rating on Mosaic (NYSE: MOS), and cut the price target to $28.00 (from $35.00), as nutrient pricing continues to erode. After speaking with industry peers, Analyst Brett Wong believes that pricing will continue to be at risk given the soft demand for crop nutrients.

Wong commented, "We are adjusting our estimates lower as nutrient pricing has continued to erode and following our discussions with industry peers we believe that pricing will continue to be at risk given the soft demand for crop nutrients. Farmers are focused on the harvest right now and without concerns of a frost we believe farmers will take their time harvesting in order to naturally dry the crop as much as possible. Although demand for fall application will likely pick-up post harvest, which would be positive for pricing, with no visibility into fall demand we are opting to be more conservative expecting pricing to continue to be weak as we move through the end of the year. Regardless, with our expectation that grain prices will be range bound next year with minimal changes to planting, we expect nutrient prices will continue to be under pressure in FY16. Target to $28, Neutral."

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 $30.14 yesterday.

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