Dahlman Rose: Mosaic Reaches Agreement, Ends Litigation

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In a research report published today by Dahlman Rose, Mosaic Company
MOS
has ended the litigation that has made the future of the South Fort Meade mine uncertain for over a year. In the report, Dahlman Rose further explained, “While we never believed that the case and the mine capacity would be lost, the uncertainty contributed to the lower valuation for the shares. Clearing this cloud at least brings back the supply certainty for rock and DAP supply and frees up additional rock capacity for other players. It may ultimately contribute to lower rock and DAP prices in the current market, but is still of great benefit for Mosaic. We believe the shares are likely to trade up by 3% to 5% in today's market, but might use some of that gain to pare our holdings going into the spring. We are still cautious on the industry with the large crop looming and possibly lower crop prices in the coming months. Even without the rock resource, MOS and other phosphate producers had been paring production to reduce the price pressure in the phosphate market.” Dahlman Rose maintains its Hold rating on Mosaic, which closed yesterday at $56.91.
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Posted In: Analyst ColorReiterationAnalyst RatingsDahlman Rose
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