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Investing.com - BofA Securities downgraded Nutrien (NYSE:NTR) from Buy to Neutral on Monday, setting a price target of $67.00. The company, with a market capitalization of $29.13 billion, has seen its stock surge 37.75% year-to-date and currently trades near its 52-week high of $65.08.
The downgrade reflects BofA’s assessment that the fertilizer price rally is likely running out of momentum, with specific concerns about ammonia and potash markets.
BofA cited three key factors behind its decision: weakening fertilizer prices, fair valuation, and ongoing agricultural cycle concerns.
The research firm noted that Nutrien’s current valuation, at approximately 7 times BofA’s projected 2026 EBITDA, appears fair following the stock’s 38% year-to-date increase.
BofA also expressed "persistent concerns about the ag cycle" as a contributing factor to the more balanced risk/reward profile that prompted the rating change.
In other recent news, Nutrien Ltd. reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $2.65, which surpassed analyst forecasts of $2.39. Despite this EPS beat, the company’s revenue fell short of expectations, coming in at $10.44 billion compared to the anticipated $10.55 billion. Additionally, Nutrien announced its decision to sell its 50% stake in Argentine nitrogen producer Profertil S.A. for approximately $600 million, with the transaction expected to close by the end of 2025. This sale is subject to the Profertil shareholder agreement, which includes a 90-day right of first refusal for the remaining equity owner.
Analyst opinions on Nutrien have varied, with JPMorgan upgrading the stock to Overweight, raising its price target to $68.00 due to favorable conditions in the fertilizer market. In contrast, Jefferies maintained a Hold rating but lowered its price target to $60.00 following the announcement of the Profertil stake sale. Jefferies had previously reduced its price target from $66.00 to $61.00, citing a mixed outlook. These developments are part of Nutrien’s ongoing strategic and financial maneuvers in the market.
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