Jefferies Lowers Nutrien (NTR) PT to $60 Following $600M Sale of Argentine Nitrogen Stake

Nutrien Ltd. (NYSE:NTR) is one of the best Canadian stocks to buy now. On September 5, Jefferies lowered the price target on Nutrien to $60 from $61, while maintaining a Hold rating on the shares after the company announced the sale of its 50% stake in Argentine nitrogen producer Profertil for $600 million. Jefferies also expects Nutrien to make more asset sale announcements, likely in South America.

The announcement that Nutrien agreed to sell its 50% equity position in the Argentina-based nitrogen producer Profertil S.A. came earlier on September 8. The sale is a joint acquisition by Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda. The expected pre-tax purchase price for Nutrien’s shares in Profertil is ~$600 million.

The sale aligns with Nutrien’s strategy to focus on assets and geographies core to its long-term vision. The company intends to allocate the sale proceeds towards initiatives consistent with its capital allocation priorities, including targeted growth investments, share repurchases, and debt reduction.  Nutrien’s proportionate share of Profertil earnings recorded in its Nitrogen operating segment totaled ~$60 million over the previous four quarters.

Nutrien Ltd. (NYSE:NTR) provides crop inputs and services. The company operates through four segments: Nutrien Ag Solutions, Potash, Nitrogen, and Phosphate.

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Disclosure: None. This article is originally published at Insider Monkey.