CF Industries (CF) - Bull Of The Day
By Zacks Investment Research on March 23, 2009 | More Posts By Zacks Investment Research | Author's Website
CF Industries Holdings Inc. (CF) has leading market shares in many key fertilizers. Strong domestic and international grain markets have produced an exceptionally high global demand for fertilizer, translating into substantially higher selling prices for all the products. The company is optimistic about its phosphate business where the market is expected to remain tight near term due to healthy offshore demand growth in India and Brazil as well as higher application rates in the U.S.
In addition, the company is likely to benefit from the proposed nitrogen facility in Peru, which will address the nitrogen demand on the west coast of Central and South America as well as Mexico, which does not have any nitrogen facility.
The company is in the midst of either being acquired by Agrium Industries or bought out by Terra Industries. As a result, we maintain our Buy rating of the stock and set a target of $75.00.
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