BUZZ-Piper Sandler cuts PT on agri-chemical companies amid tariff uncertainty

Reuters
27 Mar
BUZZ-Piper Sandler cuts PT on agri-chemical companies amid tariff uncertainty

** Piper Sandler reduces PT on agricultural commodities traders to reflect market uncertainty tied to potential tariffs and trade retaliation

** Brokerage says key risk is largely macro related and would be tied to the possibility of retaliatory tariff on U.S. agricultural products, especially from China

** Adds that another risk would be large corn and soybean crop in U.S. and/or Brazil, which would reduce grain prices and fertilizer affordability

** Expects sizable gain in U.S. corn planting in near-term to between 93 mln and 95 mln acres, increase of between 2.5% and 10.5% on prior planting level

** "This would clearly imply a substantive increase in nutrient demand, especially for nitrogen products like ammonia, urea," brokerage says

Brokerage cuts price target on the following firms:

Company

New PT

Old PT

Upside/downside to stock's last close

CF Industries CF.N

$110

$115

43.5%

Mosaic MOS.N

$30

$33

10.6%

LSB Industries LXU.N

$10

$12.25

46.4%

Nutrien NTR.TO

$60

$63

16.8%

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10