Despite a solid November thus far, CF Industries Holdings, Inc.
While CF Industries shares have rallied 13 percent in the last month, RBC sees this as a result of seasonal fluctuations in nitrogen prices. Analysts believe that these are just temporary factors that “will give way to weaker prices in 1H/17.”
“Longer-term, we believe the S&D outlook remains challenging through 2019 as capacity additions outpace slow demand growth,” said Andrew D. Wong of RBC Capital Markets.
The global nitrogen market appears to be in an over-supply situation until at least 2019, and CF trades alongside spot
RBC is maintaining its $22 price target on the company. CF Industries is down 29 percent year-to-date.
At last check, the stock was down 5.76 percent at $28.15.
Latest Ratings for CF
|Nov 2016||RBC Capital||Downgrades||Sector Perform||Underperform|