Interactive Buyside Community Issues BUY on MOS with $50.00 Target
The following is an Interactive Buyside research thesis summary, published by our independent buyside analyst community. To access the below full research report for free, click here and unlock the Mosaic report.
Fertilizer stocks plummeted on July 30th on the heels of the announcement that Russia’s Uralkali was quitting the Belarusian Potash Company cartel, which prompted investors to fear that potash pricing would plummet due to increased competition. The Mosaic Company (MOS) stock dropped 22%. My views are the market overreacted on this sudden news (which I defend in this report), and MOS has some real catalysts on the horizon that should drive the stock higher. High level list of value-driving items include:
(1) Cargill Class A ownership overhang coming to end
(2) Esterhazy tolling agreement expiration
(3) MOS management shareholder-friendly strategies
(4) Lower cost structure re Fort Meade
(5) Attractive valuation & replacement value support
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