Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - CFRA raised its rating on Yara International ASA (OTC:YARIY) from Sell to Hold, while increasing its price target to NOK400.00 from NOK300.00. The upgrade comes as the $9.5 billion fertilizer producer has demonstrated strong momentum, with shares surging over 30% in the past six months. According to InvestingPro data, the stock is trading near its 52-week high of $20.31.
The research firm cited a stronger outlook for 2025 as a key factor in its upgraded assessment of the Norwegian fertilizer producer, though it maintained caution about potential weakness in future years due to uncertain macroeconomic conditions.
CFRA’s target price represents a multiple of approximately 6x earnings, which the firm considers fair given the current balance between spikes in nitrogen prices and broader economic uncertainties.
The firm maintained its earnings per share forecasts of USD2.60 for 2025 and USD2.70 for 2026, suggesting steady but modest growth expectations for Yara International (OL:YAR).
CFRA noted that while its initial concerns about Yara being negatively impacted by escalating trade tensions remain, the company could potentially benefit from concessions as countries seek improved trade deals with the United States.
In other recent news, Yara International has seen significant developments regarding its financial outlook and analyst ratings. Deutsche Bank (ETR:DBKGn) has raised its price target for Yara International to NOK385.00, maintaining a Hold rating. The bank increased its second-quarter EBITDA forecast for Yara by 3% to $720 million, anticipating a 40% year-over-year rise. This is attributed to higher CAN and urea prices, increased volumes, and cost savings, despite higher energy costs. Separately, Kepler Cheuvreux upgraded Yara International’s stock from Hold to Buy, with a new price target of NOK410.00, up from NOK324.00. The upgrade is based on favorable nitrogen-gas spreads and a strong forecast for EBITDA, with estimates 21% above the 2025 consensus. Kepler Cheuvreux also projects Yara as a solid free cash generator, expecting a 12% free cash flow for 2027. These recent developments highlight a positive outlook for Yara International amidst favorable industry conditions.
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