UPDATE: Goldman Sachs Upgrades CF Industries to Buy

Goldman Sachs raises its rating on CF Industries

to Buy from Hold and raises its price target to $225 from $185 a share as it believes the market is underestimating the strength and sustainability of the current nitrogen upcycle. Goldman Sachs says, "We acknowledge that the stock has recently outperformed, but see 27% upside from here, even with relatively undemanding earnings assumptions: (1) nitrogen prices anchored to costs of production for high cost Western European producers, (2) natural gas prices in line with the forward curve, and (3) accretive deployment of free-cash flow in the form of buybacks or high return capital investments." CF closed at $177.08 a share on Monday.