Reasons Why Mosaic (MOS) is Strongly Favored by Hedge Funds

Mosaic Company (NYSE:MOS) is one of the best Materials stocks to invest in according to Hedge Funds.

As of the December 20 closing, Mosaic Company (NYSE:MOS) has a moderately bullish sentiment according to consensus. The stock offers over 16% upside potential to investors based on a $31.42 median 1-year price target. It has received coverage from 13 analysts, 5 of whom have assigned Buy ratings and 8 have given Hold calls.

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On January 8, Bank of America Securities analyst Matthew DeYoe maintained his optimistic outlook on Mosaic Company (NYSE:MOS). The analyst maintained his Buy rating on the stock and lowered his price target estimates from $39 to $33. Despite this downward revision, he sees more than 22% upside potential from the prevailing level.

DeYoe’s rating is part of Bank of America Securities’ revisions on the broader Chemicals sector. He highlighted concerns regarding the growing oversupply of commodities and an inconsistent backdrop for specialties. Despite these issues, the analyst noted certain catalysts that could provide support, such as the Fed’s dovish stance, encouraging PMI indicators, and capacity rationalization in China.

Mosaic Company (NYSE:MOS) is involved in mining and production of potash crop nutrients and concentrated phosphate. Through its manufacturing facilities, the company produces di-ammonium phosphate (DAP), MicroEssentials ammoniated phosphate, and mono-ammonium phosphate products. It also supplies animal feed ingredients and focuses on “mine-to-market” delivery of products to raise crop yields.

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