UPDATE: Deutsche Bank Raises PT on Mosaic Co. on Expected Share Buybacks
In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Mosaic Co. (NYSE: MOS), and raised the price target from $62.00 to $64.00.
In the report, Poole noted, “10%-plus of market cap likely to be repurchased in FY14. Valuation fair. Hold. Mosaic shares rose 2% following a roughly in-line FQ3 (and a 5% fall in corn prices) as it appears increasingly likely that share buybacks will be substantial in FY14 following the removal of restrictions on buybacks in May '13 stemming from the May '11 Cargill transaction. We now expect Mosaic to repurchase $2.7B of stock in '14 (11% of mkt cap) vs $1.25B previously. While ag fundamentals remain robust owing to historically high crop prices and historically low stocks-to-use levels, with near-term potash and phosphate pricing remaining tepid and valuation a fair 14.7x '13E EPS, we maintain Hold.”
Mosaic Co. closed on Thursday at $59.61.
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