UPDATE: BMO Capital Markets Lowers PT on Agrium on Expected Results Miss

In a report published Friday, BMO Capital Markets analyst Joel Jackson reiterated a Market Perform rating on Agrium AGU, but lowered the price target from $104.00 to $101.00.

In the report, BMO Capital Markets noted, “AGU remains rated Market Perform, but we lower our target price to $101 from $104. Like other fertilizer stocks, AGU could be pressured from overly optimistic consensus estimates and lower corn prices from massive U.S. production potential, and the stock looks expensive versus POT and CF. The challenge to AGU earnings is not Retail, but rather compressed Wholesale earnings in 2013 and 2014 (lower nutrient prices, higher gas and phosrock costs, and the three months of Vanscoy potash mine down time in 2014). Nitrogen pricing has bottomed, but could languish for months under massive Chinese urea export potential. We continue to favour POT over AGU for Canadian large-cap investors.”

Agrium closed on Thursday at $92.34.