Standpoint Research Says Time Is Now To Buy The Mosaic Co.

Standpoint Research upgraded The Mosaic Co. MOS from Hold to Buy in a note issued Thursday with a $55 price target.

Analyst Ronnie Moas noted that he has traded in and out of Mosaic four times in the past six years depending on when the shares are oversold or overvalued.

Moas’ methodology for trading Mosaic is based on agricultural cycles.  He indicated that 

“the time to buy these [fertilizer] names is when farmers are cutting back … when there are drops in crop prices” with “smaller yields and [a] delayed harvest.”

From a technical standpoint, this means buying these names when the “[Relative Price Strength (RS)] is in the bottom 20 percent as MOS is [now] and the market is over-reacting.”

The note criticized Wall Street firms for rating Mosaic in the exact opposite fashion.  Moas claimed that analysts often “put sell recommendations out on MOS in the $40s and tell clients to buy when it is in the $50s & $60s” when it should be bought “in the low $40s.”

Scotia Capital, however, also recently upgraded Mosaic.

The Mosaic Co. recently traded at $42.79, down 0.05 percent.