BMO Recommends Selling Into Strength on Fertilizer Names, Lifts Price Targets Across the Board

BMO Capital's Joel Jackson issued a somewhat bearish research note on the Fertilizer sector Wednesday morning. The analyst suggested investors should "sell into strength from the recent rebound." Jackson maintains a Market Perform rating on the industry. Jackson warned of premiums related to "the typical Jan/Feb spring lift and BPC 2.0 price-over-volume reunion prospects" which might already be baked into the stocks. The BMO analyst also noted the following concerns:

Agrium

and Yara remain Jackson's top picks for the space. He noted each of these companies have not yet "seen the MLP-hype like CF"

. Jackson maintains Market Perform ratings on Potash

and Mosaic

shares and an Underperform rating on Interpid Potash

. The BMO analyst boosted his price target on CF Industries from $215 to $225, on Intrepid Potash from $11 to $12, on Mosaic from $40 to $4 and the Potash price target from $28 to $30. The Market Vectors Agribusines ETF

is up 0.5 percent heading into Wednesday's close.