Canaccord Adams Reiterates a 'Buy' on Mosaic (MOS), Positive on Special Dividend

October 26, 2009 2:33 PM EDT

Canaccord Adams reiterates a 'Buy' on Mosaic (NYSE: MOS), price target $63.

Canaccord analyst says, "In our conversation with management, the company noted that the special dividend is consistent with what it has stated in the past. The company’s priority is to use its cash position for capital expenditures. Furthermore, if the balance sheet has the flexibility and cash position, it may, on occasion, return cash to shareholders through a special dividend. We view the special dividend as an appropriate use of funds considering the company’s current cash position of US$2.6 billion, and we do not believe it will impair the balance sheet. We expect the company to generate US$1.6 billion in cash from operations in F2010. We reiterate our BUY recommendation and target price of US$63.00 based on a 15.5x multiple to our blended F2010/2011E EPS estimate of US$4.06."

To see more analyst ratings on MOS Click Here.

Mosaic Company engages in the production and marketing of concentrated phosphate and potash crop nutrients for the agriculture industry in the United States and internationally.

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