UPDATE: Goldman Sachs Resumes Agrium at Neutral on Peaking Nitrogen Fundamentals

Goldman Sachs resumed coverage on Agrium AGU with a Neutral rating and a $108 price target. Goldman Sachs noted, "Following strong 2012 outperformance (AGU +48% vs. Fertilizer peers +17% and the S&P +13%) we see a more balanced risk/reward entering 2013 as peaking nitrogen fundamentals offset potential for improved execution/margin upside at Retail. We would prefer a more attractive entry point on current fundamentals to become more positive on shares, with the roadmap to a Retail re-rating unclear, in our view, as operating metrics are already close to in line with a broad range of industrial distribution peers. Additional visibility on long-term capital deployment would also be a source of upside to our forecasts." Agrium closed at $100.38 on Tuesday.