Scotia Capital Has Sector Outperform on Agrium

Scotia Capital is out with a research report on Agrium Inc. (NYSE: AGU) and it has a Sector Outperform rating and a $109 price target on shares.

In a note to clients, Scotia Capital writes, "The cost formula allows AGU to continue strong margin realization, while protecting most downside scenarios. To put this in perspective, AGU realized phosphate margins of ~$315/mt in 1H/11. Under the formula, AGU would have realized margins that are slightly lower than $300/mt, but would have still surpassed its NA competitors."

Shares of AGU closed at $72.82 yesterday.