Dahlman Rose Maintains a 'Hold' on Mosaic (MOS); Settling Fort Meade Litigation
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Price: $22.23 --0%
Rating Summary:
11 Buy, 20 Hold, 9 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 11 | New: 19
Rating Summary:
11 Buy, 20 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 11 | New: 19
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Dahlman Rose maintains a 'Hold' on Mosaic (NYSE: MOS).
Dahlman analyst says, "Mosaic reached an agreement to end litigation that has loomed over the future of the South Fort Meade mine for more than a year-and-a-half. This settlement provides certainty around the South Fort Meade mine and will allow it to come back to full production following approval by the court. The mine had been operating at about 25% to 35% of its original capacity of about 6 million metric tons, forcing the company to buy more rock in the international spot markets, use up inventories of rock built in the past, and push operations at other, likely less efficient mining operations in Florida."
"Clearing this cloud at least brings back the supply certainty for rock and DAP supply and frees up additional rock capacity for other players. It may ultimately contribute to lower rock and DAP prices in the current market, but is still of great benefit for MOS...We are still cautious on the industry with the large crop looming and possibly lower crop prices in the coming months. Even without the rock resource, MOS and other phosphate producers had been paring production to reduce the price pressure in the phosphate market."
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 $56.91 yesterday.
Dahlman analyst says, "Mosaic reached an agreement to end litigation that has loomed over the future of the South Fort Meade mine for more than a year-and-a-half. This settlement provides certainty around the South Fort Meade mine and will allow it to come back to full production following approval by the court. The mine had been operating at about 25% to 35% of its original capacity of about 6 million metric tons, forcing the company to buy more rock in the international spot markets, use up inventories of rock built in the past, and push operations at other, likely less efficient mining operations in Florida."
"Clearing this cloud at least brings back the supply certainty for rock and DAP supply and frees up additional rock capacity for other players. It may ultimately contribute to lower rock and DAP prices in the current market, but is still of great benefit for MOS...We are still cautious on the industry with the large crop looming and possibly lower crop prices in the coming months. Even without the rock resource, MOS and other phosphate producers had been paring production to reduce the price pressure in the phosphate market."
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 $56.91 yesterday.
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