Ag/Fert Stocks Higher Following Continued Uralkali Rumors; Analyst Calls Rally 'Overblown'
Stocks in the Ag sector are pushing noticeably higher Monday following a Forbes report suggesting Suleiman Kerimov could sell a large stake in Uralkali.
Shares of Potash (NYSE: POT) are up around 3.4 percent, shares of Mosaic (NYSE: MOS) are up 3.4 percent, and shares of Agrium (NYSE: AGU) are up 1.5 percent. Leading the group higher is Interpid Potash (NYSE: IPI) up nearly 5 percent at last check.
Credit Suisse's Christopher Parkinson issued a note earlier calling the move higher in these names "overblown." The analyst said a return to the prior structure is "extraordinarily unlikely." He believes there is little chance the issue will be resolved over the near term.
Parkinson currently has an Outperform rating on Agrium shares, a Neutral rating on Mosaic and CF (NYSE: CF), and Underperform ratings on Potash and Interpid Potash.
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