JPMorgan Downgrades Nutrien (NTR) to Neutral

JPMorgan analyst Jeffrey J. Zekaukas downgraded Nutrien (NYSE: NTR) from Overweight to Neutral with a price target of $58.00 (from $70.00).

The analyst comments "We lowered our rating on Nutrien from Overweight to Neutral. Nutrien’s EBITDA continues to make its way lower, as a base case from the peaks reached during the early days of the Russia/Ukraine conflict. The potash market is more loose, and potash tons are being added by producers in Laos, Russia, and Belarus. Grain prices have moved lower: corn was $6.50/bu a year ago and is now closer to $4.75/bu. The stocks-to-use ratio in corn was just above 10% in 2022 and is now above 15%. 2024 is likely to be another year of more than 90m planted acres of corn in the US, which, as a base case, can lead to a further slackening in corn prices. Corn and soybean seed pricing has flattened out. It appears that there is pressure in crop chemical values because of lower grain prices and more plentiful chemical supply. Nutrien’s share price tends to trade directionally with the domestic corn price. It seems to us that consensus estimates for Nutrien in 2024 are high."

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

Shares of Nutrien closed at $56.22 yesterday.

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