Trump announces trade deal with EU following months of negotiations
On Wednesday, Berenberg analyst Sebastian Bray updated the firm’s outlook on CF Industries (NYSE:CF), increasing the price target from $74.00 to $80.00 while maintaining a Hold rating on the stock. The adjustment comes as Berenberg anticipates the company’s first-quarter results, which are scheduled to be released on May 8, 2025. The fertilizer giant, currently valued at $13.5 billion, maintains a "GREAT" financial health score according to InvestingPro analysis, with the stock trading slightly below its Fair Value.
Bray expects CF Industries to report sales of $1.48 billion for the first quarter, marking a year-over-year increase of 1.8% in sales volumes. The projected average selling price per nutrient ton is $728, a slight decrease from the $736 reported in the first quarter of the previous year. Despite a modest drop in selling price, the analyst predicts an 18% year-over-year rise in adjusted EBITDA to $542 million, which is somewhat lower than the Visible Alpha consensus estimate of $559 million. The company has demonstrated strong financial management, maintaining dividend payments for 21 consecutive years and achieving a healthy current ratio of 3.08.
Looking ahead to the full fiscal year 2025, Berenberg has revised its sales and adjusted EBITDA forecasts for CF Industries upwards to $6.2 billion and $2.3 billion, respectively. The previous estimates stood at $5.9 billion for sales and $2.1 billion for adjusted EBITDA.
The revised price target of $80 reflects the updated financial model and expectations set by Berenberg ahead of CF Industries’ forthcoming earnings report. The Hold rating indicates that while Berenberg sees some positive aspects in the company’s financial performance, it advises investors to maintain their current position without further buying or selling of shares.
In other recent news, CF Industries reported fourth-quarter earnings that surpassed analyst expectations, with adjusted earnings per share of $1.89 compared to the projected $1.61. Revenue for the quarter was $1.52 billion, contributing to full-year 2024 net earnings of $1.22 billion on revenue of $5.94 billion. CF Industries also announced gross ammonia production of 2.6 million tons in Q4, a slight increase from the previous year, and anticipates production to reach approximately 10 million tons in 2025. Meanwhile, RBC Capital Markets adjusted its price target for CF Industries from $100 to $90, citing potential distractions from the Blue Point project and revised EBITDA estimates for 2025 and 2026. RBC maintained its Sector Perform rating, noting the company’s effective operations despite possible short-term challenges. Additionally, Goldman Sachs initiated coverage of CF Industries with a neutral rating and an $86 price target, acknowledging the company’s strong nitrogen fundamentals but highlighting potential future energy cost challenges. In broader industry news, the U.S. has agreed to assist Russia in re-entering global fertilizer markets, which may impact market dynamics for companies like CF Industries. These developments are being closely watched by investors, as they could influence the competitive landscape and profitability in the fertilizer sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.