On Tuesday, JP Morgan reported that it has reduced its price target on agricultural company, Agrium (AGU)
The firm has maintained a “Neutral” rating on AGU, and has lowered the company’s price target from $98 to $92. This price target suggests a 2% upside from the stock’s current price of $89.53.
Analyst Jeffrey J. Zekauskas noted, “we reduced our EPS estimates for Agrium to reflect unfavorable weather conditions for the Retail operation, delays in the closing of the accretive Viterra Retail transaction, volatile natural gas feedstock prices in Canada and flat to decreasing price trends in all of the major nutrient categories. We reduced our 2013 EPS estimate from $10.65 to $9.65 and our 2014 EPS forecast from $10.75 to $9.75. We lowered our price target to $92 from $98 as we moved it forward by one year to Dec-14. We rate AGU Neutral.”
Agrium shares were mostly flat during premarket trading Wednesday. The stock is down -10% YTD.
The Bottom Line
Shares of Agrium (AGU) have a 1.12% yield, based on Tuesday’s closing price of $89.53.
Agrium (AGU) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.