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UPDATE: UBS Investment Research Downgrades Mosaic on Reduced Estimates

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In a report published Friday, UBS Investment Research analyst Bill Carroll downgraded Mosaic (NYSE: MOS) from Buy to Neutral, and lowered the price target from $68.00 to $40.00.

In the report, UBS Investment Research noted, “We expect global potash fertilizer prices could decline from ~$400/ton to ~$300/ton near-term as Uralkali plans to gain global share following issues with its Russian partners and Chinese customers (who are becoming more self-sufficient)...Mosaic LTM gross profit is ~50/50 potash/phosphate, and we are not changing phosphate assumptions. MOS has been unsuccessful so far in negotiating to buy back stock from Cargill related owners (30% interest), which may be fortuitous in hindsight. We would expect MOS to be buyer in open market after standstill expires in Nov, and had already modelled 10% repurchase over 12mo starting Nov.”

Mosaic closed on Thursday at $41.09.

Latest Ratings for MOS

Oct 2014Scotia CapitalUpgradesSector PerformSector Outperform
Oct 2014CitigroupMaintainsNeutral
Sep 2014RBC CapitalDowngradesOutperformSector Perform

View More Analyst Ratings for MOS
View the Latest Analyst Ratings

Posted-In: Bill Carroll UBS Investment ResearchAnalyst Color Downgrades Analyst Ratings


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