UPDATE: Miller Tabak + Co. Reiterateson CF Industries on Mixed Factors

Loading...
Loading...
In a report published Thursday, Miller Tabak + Co. analyst Tim Tiberio reiterated a Sector Hold rating on
CF IndustriesCF
, and raised the price target from $230.00 to $245.00. In the report, Miller Tabak + Co. noted, “We believe the market is responding positively to a confluence of statements/actions listed by CF today, including 1) Debt leverage will increase ($1.5bn offering planned for Q1:14), which in theory should support additional cash return potential beyond the $1.7bn remaining on its current buyback plan (+$2bn); 2) a MLP-structure is being openly studied for, at least, some of its new plant assets. We see this as a positive, albeit more speculative in nature and less of a near-term catalyst; and 3) CF announced the repurchase of 665k shares ($144.2mm) at an average price of $216.67/sh so far in Q4. Since the common view is that CF is very opportunistic in its buyback habits (rarely repurchases when N-T valuation is thought to be over extended), a $217/sh avg. price point suggests management's confidence in L-T valuation.” CF Industries closed on Wednesday at $237.07.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsMiller Tabak + Co.Tim Tiberio
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...