Feltl and Company Reiterates Strong Buy Rating, $40 PT on Rentech Nitrogen Partners
In a report published Wednesday, Feltl and Company reiterated its Strong Buy rating and $40.00 price target on Rentech Nitrogen Partners (NYSE: RNF).
Feltl and Company noted, “Rentech management hosted investor visits yesterday at its plant in East Dubuque, Illinois. We came away impressed with the management team, company, and outlook. Based on our visit we believe 2012 and 2013 pricing and demand trends are similar to or better than our model...Big tonnage gains at RNF come from major cap ex, and the ongoing $100mm expansion of ammonia production will lift RNF's tonnage output by 23%. This project is expected to be done by the end of 2013 with production significantly helping starting with 1Q:14. Depending on the mix of ammonia and UAN sold from this expansion, it could easily add $50mm to $75mm to sales based on average nitrogen fertilizer prices the past several years.”
Rentech Nitrogen Partners closed on Tuesday at $31.81.
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