Raymond James downgraded Nutrien Ltd (NYSE:NTR) to Market perform (From Outperform) and cut their 12-month price target on the Canadian company to $65.00 (From $80.00) based on growing concerns about prolonged pressure, particularly supply challenges in the potash market, and downward revisions in associated estimates.
“While global potash prices found support last year after a sharp/extended slide, subsequent attempts to rally have largely fizzled in response to a bevvy of supply-related headwinds,” writes Raymond James analysts in a note.
Raymond James recently hosted a Sr. Potash Analyst with Argus Media, David Riley for a client meeting where Riley expressed a similar view.
He presented a cautiously optimistic outlook, emphasizing factors such as the rapid recovery in Belarus and Russian supply, increased supply from Laos, delayed contract signing by China until at least 3Q24, and ongoing demand recoveries in markets like India and Southeast Asia.
While Mr. Riley doesn't anticipate significant price declines, he notes that upward momentum is encountering increased challenges.
Shares of NTR are down 2.69% in mid-day trading on Friday.