Dahlman Rose Less Bullish On Ags (AGU) (CF) (POT) (MOS)
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Price: $115.00 --0%
Rating Summary:
14 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Analysts a Dahlman Rose commented on the fertilizer space Friday, following a lunch with renowned consultant to the industry, Glen Buckley. They said the talk supports their view that the recent negative grain data points are now priced in the market.
The firm said with the WASDE report which reduced expectations for next year's corn ending stocks, much of the negative ag news is largely reflected in the market. Near term, they expect some downward pricing pressure for the nutrients as farmers have already bought in most of their Fall application needs. Because of this they are recommending clients "lock in some profits on the ag shares."
The next major positive catalyst will appear in the Spring with the USDA's Prospective Planting report, the firm believes.
Overall, the firm is less bullish on the ag sector although they said they are still "constructive". "Although bullish data is still coming through, it appears to be incrementally less impactful," the analyst said. "We fear a loss of momentum is likely to keep the group in a trading range, particularly our Hold-rated names."
Ratings in the Sector from Dahlman Rose:
Agrium Inc. (NYSE: AGU) (Hold)
CF Industries Holdings, Inc. (NYSE: CF) (Buy)
Intrepid Potash, Inc. (NYSE: IPI) (Sell)
Mosaic Co. (NYSE: MOS) (Hold)
Potash Corp. (NYSE: POT) (Hold)
CVR Partners, LP (NYSE: UAN) (Hold)
The firm said with the WASDE report which reduced expectations for next year's corn ending stocks, much of the negative ag news is largely reflected in the market. Near term, they expect some downward pricing pressure for the nutrients as farmers have already bought in most of their Fall application needs. Because of this they are recommending clients "lock in some profits on the ag shares."
The next major positive catalyst will appear in the Spring with the USDA's Prospective Planting report, the firm believes.
Overall, the firm is less bullish on the ag sector although they said they are still "constructive". "Although bullish data is still coming through, it appears to be incrementally less impactful," the analyst said. "We fear a loss of momentum is likely to keep the group in a trading range, particularly our Hold-rated names."
Ratings in the Sector from Dahlman Rose:
Agrium Inc. (NYSE: AGU) (Hold)
CF Industries Holdings, Inc. (NYSE: CF) (Buy)
Intrepid Potash, Inc. (NYSE: IPI) (Sell)
Mosaic Co. (NYSE: MOS) (Hold)
Potash Corp. (NYSE: POT) (Hold)
CVR Partners, LP (NYSE: UAN) (Hold)
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