Agrium Downgraded To Sell, But CLSA Raises Price Target
Despite a recovering ag cycle, CLSA gets even more bearish on Agrium Inc. (USA) (NYSE: AGU). Earlier Thursday, CLSA released a note saying Agrium would need retail to have a dramatic uptick to keep up with its aspirations.
One of the reasons for the downgrade is that there aren't any levers to pull. After nitrogen plants have stabilized, and getting Vanscoy working, there aren't many ways to keep up with its new targets.
One piece of good news is that Agrium's assets are functioning well and urea prices will move up soon, helping margins. However, Agrium has yet to revise its guidance to incorporate a wide potential of outcomes.
Although CLSA downgraded Agrium to Sell, shares are up 3.71 percent on the day at $12.86. The estimates in the note didn't change for Agrium's earnings, but CLSA adjusts price target upwards from $84 to $86.
Latest Ratings for AGU
|Sep 2016||Bank of America||Downgrades||Neutral||Underperform|
|Sep 2016||BMO Capital||Downgrades||Outperform||Market Perform|
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