Fertilizer Happens: What CF Industries' 4Q15 Results Could Mean
CF Industries’ stock price
As of February 19, 2016, CF Industries Holdings (CF) was trading at $33 per share. Let’s look at Wall Street analyst recommendations and target prices for the company’s share price over the next 12 months after the company’s 4Q15 earnings release.
Analyst price target
Over the years, we’ve seen CF’s share price move in tandem with analyst price targets. When analysts lowered their 12-month price targets, the company’s share price also fell, and vice versa. The consensus price target for CF as of February 19 stood at $40, which was revised downward from $47.4 before the 4Q15 earnings release. However, the new price target still represents a 21% upside from the current price of $33.
Analyst recommendations
While CF’s price targets have changed, analyst recommendations have largely remained unchanged after its 4Q15 earnings release. Out of 16 analysts surveyed by Bloomberg, about 62% have “buy” recommendations for CF Industries (CF). About 38% have “hold” recommendations, and none has a “sell” recommendation for the company. Overall, then, analysts had a “buy” rating for CF Industries as of February 11.
ETF exposure and industry peers
You can gain exposure to agricultural fertilizer companies without investing directly in a company’s stock by investing in the iShares US Basic Materials ETF (IYM). Mosaic (MOS), CF Industries (CF), Monsanto (MON), and Dow Chemicals (DOW) make up about 23.6% of IYM.
To get more updates on fertilizer companies, visit our Agricultural Fertilizers page.
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