Dahlman Rose Downgrades Rentech Nitrogen Partners (RNF) to Hold; Large Corn Corp Could Be Trouble for Fertilizers
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Price: $11.41 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Dahlman Rose downgraded Rentech Nitrogen Partners (NYSE: RNF) from Buy to Hold.
Analyst, Charles Neivert, said, "In our view, the potential for an exceptional corn crop under a variety of acreage and yield scenarios, counters almost all of the bullish theses for fertilizer shares. As such, we are downgrading the shares of both CF Industries (NYSE: CF) and CVR Partners (NYSE: UAN) to Sell from Hold and the shares of RNF to Hold from Buy. We believe that the WASDE report will be a catalyst for a reassessment of fertilizer shares. The forecast of a large carryout could prove to be very destructive for corn prices and, subsequently, fertilizer shares. We are struck by the range of scenarios with outcomes that could not only drive corn below $5/bushel, but even $4/bushel in the more bearish cases."
For an analyst ratings summary and ratings history on Rentech Nitrogen Partners click here. For more ratings news on Rentech Nitrogen Partners click here.
Shares of Rentech Nitrogen Partners closed at $26.50 yesterday.
Analyst, Charles Neivert, said, "In our view, the potential for an exceptional corn crop under a variety of acreage and yield scenarios, counters almost all of the bullish theses for fertilizer shares. As such, we are downgrading the shares of both CF Industries (NYSE: CF) and CVR Partners (NYSE: UAN) to Sell from Hold and the shares of RNF to Hold from Buy. We believe that the WASDE report will be a catalyst for a reassessment of fertilizer shares. The forecast of a large carryout could prove to be very destructive for corn prices and, subsequently, fertilizer shares. We are struck by the range of scenarios with outcomes that could not only drive corn below $5/bushel, but even $4/bushel in the more bearish cases."
For an analyst ratings summary and ratings history on Rentech Nitrogen Partners click here. For more ratings news on Rentech Nitrogen Partners click here.
Shares of Rentech Nitrogen Partners closed at $26.50 yesterday.
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