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Analyst sees strong head winds driving Agrium (T.AGU)

Stockhouse Editorial
0 Comments| February 24, 2014

Scotia Capital Inc. analyst Ben Isaacson says the prospects look bright for Agrium Inc. (TSX: T.AGU, Stock Forum), a company that remains his top pick in the North American fertilizer sector.

In a research report, Isaacson said he can see three reasons why Agrium has not outperformed of late:
  1. Commodities like natural gas, corn, and nitrogen have been going against Agrium.
  2. There has been a tactical Canadian trade towards Potash Corp. of Saskatchewan Inc. (TSX: T.POT, Stock Forum).
  3. Some investors have avoided Agrium until its largest shareholder completed a multi-month exit of its 7.7% stake.
But, for the most part, these issues have now abated, Isaacson said.

“Our sector outperform rating on Agrium remains intact, with an unchanged $110 target, as well roll forward our valuation period to 2015,’’ Isaacson said.

Agrium shares rose 1.1% to $101.90 Monday, leaving a market cap of $14.6 billion, based on 143.7 million shares outstanding. The 52-week range is $110.21 and $83.46.


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