Wall Street analysts have been weighing in on the new Nutrien Ltd., the merged Potash Corp. of Saskatchewan Inc. and Agrium Inc., with some 10 giving the company a buy, 6 holds and only 1 with a sell, according to Bloomberg’s analysis. Forward share forecasts range from $50 to $68. The stock began trading Jan. 2 at $52.60 and closed Jan. 11 at $53.25.
The one naysayer was Bank of America analyst Steve Byrne, with an underperform and sell, with expectations of $50 per share, according to Bloomberg. He thinks Nutrien’s Retail segment will contribute a low-teens EV/EBITDA, citing the rapid expansion of new entrant Farmers Business Network (FBN). He also believes the Potash segment will suffer due to loosening supply/demand balance through 2020 and lower prices. However, he believes the stock could see several sources of upsides in medium-term from capital deployment, synergies and a rally in nitrogen prices.
Nutrien opted not to respond to Byrne’s assessments last week.