Deutsche Bank Maintains a 'Hold' on Mosaic (MOS); Phosphates Margins Pressured in Q1

Deutsche Bank maintains a 'Hold' on Mosaic (NYSE: MOS) price target of $69.00.

Deutsche analyst says, "Mosaic shares fell 5% post its Q1 release, in our view due to 1) persistent gross margin pressure in Phosphates over the next 2 quarters reflecting the lagged impact of higher ammonia costs, and 2) conservative Q2 potash pricing guidance. We believe these concerns will be largely offset by a strong fall nutrient application season (similar to last year) as tight global commodity markets support demand and pricing. However, with uncertainty regarding pending litigation (South Fort Meade, Esterhazy), we maintain our rating...To reflect lagging Phosphates raw material costs, we are lowering our ’12 EPS by $0.20 to $5.55, up 28%."

For more ratings news on Mosaic click here and for the rating history of Mosaic click here.

Shares of Mosaic closed at $54.20 yesterday.

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