Oil prices dip on fears of slowing demand, oversupply
Investing.com - Jefferies has lowered its price target on Nutrien (NYSE:NTR) to $60.00 from $61.00 while maintaining a Hold rating on the stock. Currently trading at $57.10, the stock sits within analysts’ target range of $55-$77, according to InvestingPro data.
The price target reduction follows Nutrien’s announcement that it will sell its 50% stake in Argentine nitrogen producer Profertil for approximately $600 million, with the transaction expected to close by the end of 2025. The deal represents about 2% of Nutrien’s current $27.7 billion market capitalization.
Jefferies notes that this divestiture represents Nutrien’s ongoing efforts to streamline its portfolio and increase focus on core regions, with the firm expecting additional asset sale announcements likely in South America.
The proceeds from the Profertil stake sale will likely be allocated toward debt reduction, share buybacks, and growth investments, according to Jefferies’ analysis.
While lowering the price target to reflect lower deal-related earnings, Jefferies has maintained its 6.3x EBITDA multiple valuation approach for Nutrien stock.
In other recent news, Nutrien Ltd. reported its second-quarter 2025 earnings, revealing a noteworthy performance in earnings per share (EPS) but falling short in revenue. The company achieved an EPS of $2.65, surpassing analyst expectations of $2.39, while revenue was reported at $10.44 billion, below the anticipated $10.55 billion. In a significant development, Nutrien announced an agreement to sell its 50 percent stake in Argentina-based Profertil S.A. for approximately $600 million. This transaction is expected to close before the end of 2025, subject to customary conditions.
Analyst firms have provided mixed outlooks on Nutrien. JPMorgan upgraded the stock from Neutral to Overweight, citing favorable conditions in the fertilizer market, while Jefferies lowered its price target to $61.00, maintaining a Hold rating. The upgrade by JPMorgan highlights the firm’s positive view of the fertilizer market’s supply and demand dynamics. These recent developments indicate a period of strategic adjustments and market analysis for Nutrien.
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