Berenberg Bank analyst Aron Ceccarelli upgraded the rating on Nutrien (NTR – Research Report) to a Buy on April 26, setting a price target of $66.00.
Aron Ceccarelli has given his Buy rating due to a combination of factors centered around Nutrien’s recovery from a challenging year and anticipated positive developments. Despite facing hurdles such as price normalization in its primary potash fertilizer segment, production setbacks, increased costs in retail, and the cancellation of a significant clean ammonia project, Nutrien has emerged with respectable Q4 results. Ceccarelli’s optimism is bolstered by three imminent catalysts: expected strong Q1 performance, a potential capital distribution announcement in June, and the renewal of key potash contracts with Canpotex, which may stabilize commodity prices for the year ahead. The forecasted solid earnings and operational improvements across various segments contribute to this positive outlook.
Moreover, Ceccarelli anticipates that Nutrien will announce an incremental buyback on June 12, following the company’s strategic adjustments in capital expenditures and divestment from select retail businesses in South America. This financial maneuvering is expected to generate significant free cash flow and could result in a buyback program valued between $1.5 billion and $2 billion for 2025-2026. Additionally, the potential sale of the South American retail businesses and a strategic focus on integrating acquisitions in Brazil position Nutrien favorably for future consolidation opportunities in the region. The valuation metrics also appear attractive, with Nutrien trading below the average multiple since its inception, supporting the Buy rating and an increased price target.
In another report released on April 15, RBC Capital also maintained a Buy rating on the stock with a $70.00 price target.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NTR in relation to earlier this year.
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Nutrien (NTR) Company Description:
Canada-based Nutrien Ltd. is a crop nutrient company, which produces and distributes potash, nitrogen and phosphate products for agricultural, industrial and feed manufacturers.
