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Deutsche Bank (ETR:DBKGn) raised its price target on Yara International ASA (OTC:YARIY) stock to NOK385.00 from NOK370.00 on Tuesday, while maintaining a Hold rating on the Norwegian fertilizer producer. The stock, currently trading at $20.05, has shown remarkable momentum with a 54.16% gain year-to-date. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The bank increased its second-quarter EBITDA forecast for Yara by 3% to $720 million, citing higher margin assumptions. Deutsche Bank expects Yara’s Q2 EBITDA to rise 40% year-over-year, 13% quarter-over-quarter, and come in 12% above Bloomberg consensus. With the company’s next earnings report due on July 18, InvestingPro subscribers can access 10+ additional investment tips and comprehensive financial metrics to better evaluate this forecast.
Deutsche Bank anticipates several positive factors will contribute to Yara’s EBITDA performance, including higher CAN and urea prices, increased volumes, cost savings, and slightly favorable foreign exchange rates. These benefits are expected to be partially offset by higher energy costs.
The bank projects Yara’s Q2 EBITDA margin at 18.4%, slightly higher than the first quarter of 2025 due to improved spreads. Yara has not provided quantitative guidance for the period.
Deutsche Bank expects Yara to continue highlighting a slowing rate of urea supply additions from 2025 onward while also providing energy cost guidance for the third and fourth quarters of 2025.
In other recent news, Yara International (OL:YAR) has seen updates from two major financial firms regarding its financial outlook. Kepler Cheuvreux upgraded Yara International’s stock rating from Hold to Buy, with a new price target of NOK410.00, up from NOK324.00. This upgrade is based on favorable nitrogen-gas spreads, which are expected to boost Yara’s financial performance significantly. Kepler Cheuvreux’s analysts are projecting Yara’s EBITDA estimates to be 21% above the 2025 consensus and 34% above for 2027, highlighting the company’s potential as a strong free cash generator.
Meanwhile, Deutsche Bank increased its price target for Yara International to NOK357.00 from NOK340.00, maintaining a Hold rating. This adjustment comes after a 5% rise in their Q1 EBITDA estimate, attributed to higher fertilizer prices and favorable foreign exchange rates. Deutsche Bank anticipates a 25% year-over-year increase in Yara’s Q1 EBITDA, with the margin expected to reach 15.4%, slightly improving from the previous quarter. Furthermore, Deutsche Bank has raised its EBITDA forecasts for 2025-2026 by 5-6%, based on expectations of continued higher sales and margins.
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