Gabelli Has Buy On CF Industries, Inc. (CF)

Gabelli & Co. has a Buy rating on shares of CF Industries, Inc.

. In a note to clients, Gabelli writes, "The agriculture sector is experiencing strong fundamentals with heavy demand for corn, soybeans, wheat and cotton. CF benefits as farmers plant more acres and utilize more fertilizer to boost crop yields. We estimate CF's earnings per share at $13.50 in 2011 and $12.60 in 2012 with an 11.1% compounded annual growth rate in earnings per share through 2015. In 2012, we expect fertilizer pricing and crop planting to normalize, resulting in a decrease in EBITDA margin and earnings. CF trades at 5.2x 2012E EBITDA and 10.6x 2012E EPS, lower than peers trading at 7.0x to 11.0x 2012 EBITDA. The stock trades at a 40% discount to our 2012 PMV of $225." Shares of CF are down $3.23 to $130.46, a loss of 2.4%.