Following the election of Agrium Inc.’s (AGU) Board of Directors nominees, analysts at TD Securities upgraded the agricultural products maker on Wednesday.
The analysts upgraded AGU from “Hold” to “Buy” and see shares reaching $115. This target suggests a 21% upside to Tuesday’s closing price of $95.04.
“Fundamentally, we believe that the election of Agrium director nominees will provide continuity in the company’s overall strategy and operational management,” said TD Securities analyst Paul D’Amico. “However, in the near term, we would not be surprised to see some stock price weakness as JANA piggy-backers and or ‘fast money’ per se likely reduce their holdings of AGU’s stock on the back of a lack of potential value catalysts from JANA.”
Moreover, the upgrade is tied to a recent 10% decline in AGU shares in the past month.
Agrium shares were down 34 cents, or -0.36%, during pre-market trading on Wednesday. The stock is down -4.84% year-to-date.
The Bottom Line
Shares of Agrium (AGU) have a dividend yield of 1.05% based on last night’s closing price of $95.04 and the company’s annualized dividend payout of $1.00 per share.
Agrium Inc. (AGU) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.