UPDATE: Piper Jaffray Downgrades Agrium to Neutral Following Proxy Vote Results

In a report published Wednesday, Piper Jaffray analyst Michael E. Cox downgraded the rating on Agrium AGU from Overweight to Neutral, and lowered the price target from $133.00 to $105.00. In the report, Cox noted, “We are downgrading shares of AGU to Neutral from Overweight and lowering our price target from $133 to $105 as we struggle to identify company-specific catalysts to support valuation multiple expansion following yesterday's proxy vote results. Agrium management's victory yesterday maintains the status quo following an often contentious exchange between management and activist shareholder Jana leading up to the vote. Jana has already pledged to not back down, and has called out foul play, which will undoubtedly prolong a highly public debate that investors have already grown fatigued with. Lacking specific catalysts, we believe that AGU shares are more susceptible to near-term risk to estimates due to weather, a perceived overhang following the proxy vote results, and over-arching sector concerns of downward trending corn prices.” Agrium closed on Tuesday at $95.04.