BMO Capital Markets reported on Tuesday that it has downgraded agricultural company, Agrium Inc. (AGU) to a “Market Perform.”
The firm has lowered its rating on AGU from “Outperform” to “Market Perform,” and has reiterated a $120 price target. This price target suggests a 11% increase from the stock’s current price of $106.35.
An analyst from the firm commented, “AGU should have a robust H1 serving large North American acreages, though Q1 comps will be challenging as Q1/12 was an early spring, while cold and wet weather has persisted this Q1. Agrium is well run and business prospects remain robust, but the stock has been pushing up on reasonable sum-of-the-parts valuation ranges for some time and we do not see any near-term transactions to materially improve this range. Fertilizer stocks could be pressured this year from corn price futuress, and the trade is turning toward potash- and phosphate-heavy producers… versus nitrogen-heavy producers from weakening urea/ammonia nitrogen sentiment… and higher gas prices.”
Agrium shares were down 54 cents, or -0.50% during Tuesday morning trading. The stock has increased 28% in the past year.
The Bottom Line
Shares of Agrium Inc. (AGU) have a 0.93% yield, based on Monday’s closing price of $107.21.
Agrium Inc. (AGU) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.