UBS Cuts Price Target on Agrium (AGU) After Revising Fertilizer Price Forecasts

UBS maintained a Buy rating on Agrium (NYSE: AGU), and cut the price target to $115.00 (from $118.00), after revising fertilizer price forecasts.

Analyst Brian MacArthur commented, "UBS has revised its fertilizer price forecasts. In nitrogen, urea benchmark prices (Yuzhny spot FOB) were cut to $275/mt (from $300/mt) in 2016 and $250/mt (from $300/mt) in 2017 as lower Chinese coal prices and weakness in the RMB have led to a falling & flattening cost curve. In potash, benchmark price forecasts (FOB Vancouver, std grade) to $275/mt (from $300/mt) in 2016 and $250/mt (from $300/mt) in 2017 as increasing competition both in the U.S. and globally weighs on pricing."

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

Shares of Agrium closed at $95.06 yesterday.

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