Morgan Stanley Thinks Mosaic Shares Have Reacted Favorably to Recent News
In a report published Wednesday, Morgan Stanley analyst Vincent Andrews reiterated an Equal-Weight rating on Mosaic Company (NYSE: MOS).
In the report, Morgan Stanley noted, “Mosaic shares reacted favorably to both an incremental share repurchase and management's view that phosphate has clearly turned the corner and that potash is likely to follow, albeit at a far more measured pace. Mosaic anticipates an incremental 4mm mt of potash demand to a record 57-59mm mt in 2014 (we model 57). To achieve this level, 2014 has to distinguish itself from 2011-2013 by not having a material inventory deload in 2H14. For this to happen, customer willingness to hold inventory at the end of both the spring and the fall season will have to revert, and the grain price environment will likely need to remain comfortably around current levels, both of which are of course outside of the company's control.”
Mosaic Company closed on Tuesday at $47.96.
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