CF Industries upgraded to Outperform at RBC Capital on fertilizer demand (NYSE:CF)

CF Industries Holdings (NYSE:CF) on Monday was raised to Outperform from Sector Carry out by analysts at RBC Capital due to a improved outlook for nitrogen fertilizer. The financial institution raised its value goal on CF Industries to $135 from $110 a share.

North American fertilizer makers reminiscent of CF Industries can profit from demand for crops and decrease power costs than in Europe, the financial institution stated. Pure fuel costs in Europe surged after Russia invaded Ukraine and lower provides to Western nations.

“Within the close to time period, we see potential for important upward estimate revisions as consensus seems to be discounting very conservative nitrogen value forecasts,” Andrew D. Wong, analyst at RBC, stated within the Oct. 3 report.

RBC raised its EBITDA estimate for CF Industries to $6 billion from $4.4 billion for 2023, in contrast with the consensus forecast for $4.7 billion. The financial institution additionally lifted its EBITDA estimate for 2024 to $5.2 billion from $3.9 billion.

CF Industries has risen 42% this 12 months, contrasting with a 24% decline for the S&P 500 Inventory Index (SP500).

In search of Alpha contributor Michael Wiggins De Oliveira charges CF Industries (CF) as a Sturdy Purchase due to demand for fertilizer produced in North America. Columnist Leo Nelissen additionally has a Sturdy Purchase ranking on CF Industries (CF) on favorable market circumstances.