UPDATE: Goldman Sachs Reinstates CF Industries at Sell; Nitrogen Fundamentals Peaking

Goldman Sachs reinstated coverage on CF Industries

with a Sell rating and a $204 price target. Goldman Sachs noted, "We believe that the transformational impact of shale gas for North American Nitrogen producers is now well understood and that 2012 marked a peak for CF fundamentals. We see 14% downside to 2013 consensus EPS from a combination of lower ammonia/urea prices and higher natural gas costs. … While elevated crop prices remain supportive of strong N applications, we favor P&K for leverage to higher crop prices following 2012 underperformance and see more risk to N than other nutrients from weather-related delays to planting and/or rotation to soybeans." CF Industries closed at $217.22 on Tuesday.