Morgan Stanley Lifts CF Industries (CF) Target, RBC Capital Follows with Increase on Strong Fertilizer Prices

CF Industries Holdings, Inc. (NYSE:CF) is included among the 15 Cash-Rich Dividend Stocks to Invest in Right Now.

On April 8, Morgan Stanley analyst Vincent Andrews raised his price recommendation on CF Industries Holdings, Inc. (NYSE:CF) to $135 from $95. It reiterated an Equal Weight rating on the shares. He said equity markets “appear to have fairly efficiently priced in” the tighter backdrop tied to the Middle East conflict for both CF and Yara (YARIY). He also pointed out that Nutrien (NTR) “appears left behind,” based on how the fertilizer group is trading.

A day earlier, on April 7, RBC Capital analyst Andrew Wong increased his price target on CF Industries to $125 from $100 and maintained a Sector Perform rating. The update came as part of a broader Q1 preview for the fertilizers sector. He said fertilizer prices came in higher than expected during the quarter. The Iran war limited exports from the Middle East, which is a key supplier of nitrogen and phosphate. Nitrogen, in particular, saw a sharp move higher due to tighter supply and rising LNG costs, which pushed up global marginal costs. RBC said it expects elevated nitrogen prices to support CF’s performance. The firm also sees the company generating solid cash flows, even as it continues to invest in the Blue Point ammonia project.

CF Industries Holdings, Inc. (NYSE:CF) produces hydrogen and nitrogen products on a global scale. The company is working to decarbonize its ammonia production network, aiming to support low-carbon hydrogen and nitrogen across energy, fertilizer, emissions abatement, and other industrial uses.

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