Mizuho Sees Continued Pressure on Mosaic (MOS) as Chemical Markets Stay Soft

The Mosaic Company (NYSE:MOS) is included among the 15 Dividend Stocks with Low Payout Ratios and Strong Upside.

On December 18, Mizuho analyst Edlain Rodriguez lowered the price target on The Mosaic Company (NYSE:MOS) to $28 from $31 and kept a Neutral rating. The move came as part of the firm’s 2026 outlook for chemicals, agriculture, and packaging. Mizuho pointed to higher exports from China, which are weighing on most basic chemical markets. The firm also expects the March quarter to open as weakly as the December quarter closed for many companies in the group.

A few days later, on December 22, The Mosaic Company (NYSE:MOS) announced a definitive agreement to sell Mosaic Potash Carlsbad, Inc. The deal includes the mine’s operations, assets, and liabilities in Carlsbad, New Mexico. The buyer is International Minerals Carlsbad, and the total value of the transaction is $30 million. The agreement calls for an initial cash payment of $20M at closing, subject to customary adjustments. The remaining $10 million will be paid in three equal annual installments starting in 2029.

International Minerals Carlsbad will also assume responsibility for the asset retirement obligations tied to the Carlsbad operations. Mosaic expects the transaction to close in the first half of 2026 and plans to record a non-cash asset impairment in the fourth quarter of 2025.

Mosaic Executive Vice President, Operations, Karen Swager, made the following statement:

“This transaction is a win for all parties. We are pleased that International Minerals Carlsbad will provide continuity for our Carlsbad employees at the site, and that Mosaic has taken another step to focus on core assets. Our potash production is now entirely focused on our operations in Saskatchewan, Canada which are expected to continue to generate strong returns.”

As part of the sale, International Minerals Carlsbad will take over Mosaic’s potash and water business in New Mexico, along with related intellectual property. That includes the K-Mag and Dynamate brands.

The Mosaic Company (NYSE:MOS) remains one of the world’s largest producers and marketers of phosphate and potash fertilizers. The company continues to focus on supplying essential crop nutrients to global agricultural markets.

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Disclosure: None.