Mosaic (MOS) Bouncing; BMO Downgrades to Market Perform, Cuts PT to $72

BMO Capital downgrades The Mosaic Company (NYSE: MOS) from Outperform to Market Perform and lowers its price target from $200 to $72.

Shares of Mosaic are bouncing today after falling more than 41% yesterday on an earnings disappointment and concerning production guidance. The stock is currently up about 11%, or $4.50, to $44.16.

Mosaic's lowered phosphate guidance sent a shiver through the entire ag sector: recent high-flyers such as Potash (NYSE: POT), Agrium (NYSE: AGU), and CF Industries (NYSE: CF) all fell more than 20% yesterday. As value investors could be stepping into these names today, in addition to shorts probably taking profits on their downside bets, these stocks are bouncing with the majority of the commodities complex. Potash is currently up over 11%, Agrium is up nearly 7%, and CF is up more than 8%.

With shares of Mosaic trading in a range around $44 so far today, BMO's drastically lowered price target still represents a potential gain of more than 60% from current levels.

The Mosaic Company engages in the production and marketing of concentrated phosphate and potash crop nutrients for the agriculture industry worldwide.

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