Morgan Stanley Overweight on CF Industries

Morgan Stanley is out with a research report, and it has an Overweight rating and a $215 price target on CF Industries

. In a note to clients, Morgan Stanley writes, "We remain Overweight CF Industries with estimates and price target intact despite another volatile day that would suggest the antithesis. We expect management is likely to be taking advantage of Thursday's volatility with some portion of the $500 million remaining in its $1.5B share repurchase program. Recall that management was extremely aggressive in buying shares (~10% of shares outstanding) between August and October when CF went from $150 to $190 to $120 to $160…). We think the market is too caught up in predicting the doom of the nitrogen cycle to recognize: 1) CF may wind up repurchasing ~30%+ of shares outstanding by the time that happens; and 2) Consensus for 2012 already assumes a material reduction of nitrogen prices." Shares of CF lost $18.79 yesterday to close at $148.19.