Goldman Sachs Resumes CF Industries (CF) at Sell, Says Nitrogen Peaked

Goldman Sachs resumes coverage on CF Industries (NYSE: CF) with a Sell rating and $204 price target, suggesting 5% downside. The firm said nitrogen fundamentals have peaked

The firm comments, "We believe that the transformational impact of shale gas for North American Nitrogen producers is now well understood and that 2012 marked a peak for CF fundamentals. We see 14% downside to 2013 consensus EPS from a combination of
lower ammonia/urea prices and higher natural gas costs."

Goldman said that while elevated crop prices remain supportive of strong N applications, they favor P&K for leverage to higher crop prices following 2012 underperformance. They see more risk to N than other nutrients from weather-related delays to planting and/or rotation to soybeans.

For an analyst ratings summary and ratings history on CF Industries click here. For more ratings news on CF Industries click here.

Shares of CF Industries closed at $217.22 yesterday.

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