UPDATE: Morgan Stanley Resumes Coverage on Agrium with Equal-Weight Rating on Lack of Catalysts

In a report published Wednesday, Morgan Stanley analyst Vincent Andrews resumed coverage on

with an Equal-Weight rating. In the report, Morgan Stanley noted, “We are resuming coverage with an Equal-weight rating. Agrium's diversified business mix should serve the company well as it goes through the current trough commodity price environment. Nitrogen will continue to benefit from its 'must use' status and low natural gas prices as well as the Profertil debottleneck, and Borger and Egypt expansions. Retail growth should continue through the integration/synergies from Viterra, tuck-in acquisitions and the ongoing need to increase land productivity, plus potential upside from precision agriculture efforts. The potash segment will see volume growth from the Vanscoy expansion (i.e., the retail segment will ensure a max utilization rate).” Agrium closed on Tuesday at $94.04.