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UPDATE: Goldman Sachs Resumes Mosaic at Buy on Valuation, Cash Return Acceleration

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Goldman Sachs resumes coverage on Mosaic (NYSE: MOS) with a Buy rating and a $68 price target.

Goldman Sachs commented, "With (1) shares now trading at 5.9X CY2013 EBITDA vs. a 5-year average of 7.3X, (2) management having already cut November quarter volume guidance to reflect ongoing industry destocking, and (3) delayed China and India potash contracts expected to be resolved in the next several months providing a catalyst to improved industry fundamentals, MOS now satisfies our “Rule of 3” cyclical framework that gives us confidence to be aggressive buyers at current levels. We see 25% upside to our $68 12-month price target, which implies MOS trades at 7.5x CY2013 EV/EBITDA."

Mosaic closed at $55.80 on Tuesday.

Latest Ratings for MOS

DateFirmActionFromTo
Oct 2014Standpoint ResearchUpgradesHoldBuy
Oct 2014Scotia CapitalUpgradesSector PerformSector Outperform
Oct 2014CitigroupMaintainsNeutral

View More Analyst Ratings for MOS
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

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