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Investing.com - JPMorgan upgraded CF Industries (NYSE:CF) from Underweight to Neutral on Tuesday, raising its price target to $92.00 from $75.00. The fertilizer giant, with a market capitalization of $15 billion, currently trades at a P/E ratio of 12.12 and maintains a solid 2.16% dividend yield.
The upgrade comes as the U.S. administration works to clarify its economic relationship with Russia amid the ongoing Russia-Ukraine conflict, potentially affecting fertilizer imports.
Russia currently stands as the largest exporter of urea to the United States and faces no tariffs, unlike most other major urea importers that pay 10% or higher tariffs, with Canada being another exception.
JPMorgan notes that potential tariffs on Russian fertilizers imported into the U.S. could lead to higher domestic urea prices in both the near and intermediate term.
The investment bank cited uncertainties over the direction of U.S. tariff policies as the primary reason for changing its investment rating on CF Industries, acknowledging that trade patterns for fertilizers could shift if new tariffs are imposed.
In other recent news, CF Industries Holdings, Inc. reported robust financial results for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved earnings per share of $1.85, exceeding the analysts’ consensus forecast of $1.56, while revenue reached $1.66 billion, higher than the expected $1.53 billion. Additionally, CF Industries has commenced operations at its carbon dioxide dehydration and compression facility at the Donaldsonville Complex in Louisiana. This facility will allow for the transportation and permanent geological sequestration of up to 2 million metric tons of carbon dioxide annually, with ExxonMobil (NYSE:XOM) as its partner for CO2 transportation and storage.
In leadership news, CF Industries announced that Ashraf K. Malik, Senior Vice President of Manufacturing and Distribution, will retire effective April 1, 2026. Trevor Williams, with over 30 years of experience in nitrogen and chemicals manufacturing, will succeed Malik. Meanwhile, JPMorgan has downgraded Cellnex Telecom (BME:CLNX), S.A. from Overweight to Neutral due to valuation concerns, adjusting the price target from EUR53.50 to EUR44.50. These developments reflect ongoing changes and strategic shifts within these companies.
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