CF Industries (CF) PT Lowered to $79 at Stifel

Stifel analyst Vincent Anderson lowered the price target on CF Industries (NYSE: CF) to $79.00 (from $93.00) while maintaining a Hold rating.

The analyst commented, "We are updating our 1Q23 estimates for observed pricing in the quarter, as well as adjusting our 2023 and 2024 estimates for our updated price deck. On net, we lower our nitrogen prices given the pace of 1Q23 price declines, albeit the reduction is mainly concentrated in 2023 as the market has remained within our expectations for longer-term pricing. We also provide an initial breakdown of the financial impact of the company's announced purchase of Incitec Pivot's Waggaman facility, though we exclude the contribution from our published estimates until the transaction is completed. While strategically a sound purchase, based solely on our estimated earnings contribution and the announced purchase price and assuming improved operational execution under CF management, the transaction is marginally dilutive at our current valuation (see pg. 10). We remain Hold rated and lower our target price to $79 on a lower multiple and minor dilution from Waggaman."

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