UPDATE: Morgan Stanley Reiterates On CF Industries As Underperformance Should Begin To Reverse

In a report published Friday, Morgan Stanley analyst Vincent Andrews reiterated an Overweight rating on CF Industries Holdings (NYSE: CF), but removed the $300.00 price target.In the report, Morgan Stanley noted, “CF shares have underperformed recently, we believe, as investors have been concerned about lower corn prices and the seasonal decline in urea prices."We believe this underperformance should begin to reverse as: 1. The seasonal decline in urea prices is now likely over (see discussion below about current Indian urea tender); 2. The decline was not nearly what many posited in the bear case (many expected $30/st+ lower); 3. Corn prices do not determine urea prices, rather the global cost curve does (this has been demonstrated once again in the past several weeks as corn has declined and urea has gone up as a function of lower production due to lower urea prices). See 4Q13 for further demonstration.”CF Industries Holdings closed on Thursday at $245.99.