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Goldman Sachs Resumes Mosaic (MOS) at Buy, Would Be Aggressive Buyers

December 12, 2012 8:12 AM EST Send to a Friend
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Price: $46.43 -0.64%

Rating Summary:
    6 Buy, 19 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 21
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Goldman Sachs resumes coverage on Mosaic (NYSE: MOS) with a Buy rating and $68 price target saying the estimate revision cycle is inflecting and cash return accelerating. It addition they said shares are cheap.

The firm comments, "We believe that MOS' estimate revision cycle is inflecting given that global potash fundamentals are bottoming, cash return opportunities are finally emerging, and underlying phosphate earnings power has been underestimated, with our FY2014 EPS estimate of $5.95 17% above consensus. With (1) shares now trading at 5.9X CY2013 EBITDA vs. a 5-year average of 7.3X, (2) management having already cut November quarter volume guidance to reflect ongoing industry destocking, and (3) delayed China and India potash contracts expected to be resolved in the next several months providing a catalyst to improved industry fundamentals, MOS now satisfies our "Rule of 3" cyclical framework that gives us confidence to be aggressive buyers at current levels."

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 $55.80 yesterday.




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