Street Calls of the Week
SASKATOON - Nutrien Ltd. (TSX and NYSE:NTR), a global agricultural solutions provider with a market capitalization of $27.46 billion and annual revenues of $25 billion, announced it has reached an agreement to sell its 50 percent equity position in Argentina-based nitrogen producer Profertil S.A. to Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda through a joint acquisition for approximately $600 million on a pre-tax basis.
The transaction is expected to be completed before the end of 2025, subject to customary closing conditions. Under the Profertil shareholder agreement, the remaining 50 percent equity owner holds a 90-day right of first refusal to purchase Nutrien’s stake under the same terms.
"The agreement to sell our equity stake in Profertil advances our strategy to focus on assets and geographies that are core to our long-term vision," said Ken Seitz, Nutrien’s President and CEO, according to the company’s press release.
Nutrien plans to allocate the proceeds toward targeted growth investments, share repurchases, and debt reduction, aligning with its capital allocation priorities.
The proportionate share of Profertil earnings recorded in Nutrien’s Nitrogen operating segment totaled approximately $60 million over the previous four quarters.
Nutrien, a global provider of crop inputs and services, operates a network of production, distribution, and agricultural retail facilities. BofA Securities is serving as financial advisor to Nutrien for this transaction.
The divestiture represents Nutrien’s continued effort to streamline its portfolio and focus on core operations, as stated in the company’s announcement.
In other recent news, Nutrien Ltd. reported its second-quarter 2025 earnings, revealing a notable earnings per share (EPS) of $2.65, which exceeded analysts’ expectations of $2.39. This represents a surprise increase of 10.88%. However, the company’s revenue fell short of projections, coming in at $10.44 billion compared to the anticipated $10.55 billion. JPMorgan has upgraded Nutrien’s stock from Neutral to Overweight, citing favorable conditions in the fertilizer market, including low inventories and tight supply/demand balances. The firm also raised its price target to $68.00, reflecting a positive outlook for the sector. Conversely, Jefferies has adjusted its price target for Nutrien to $61.00 from $66.00, while maintaining a Hold rating on the stock. Despite the mixed outlook, Nutrien’s EPS performance was better than expected, surpassing Jefferies’ forecast by $0.17. These developments highlight the varied perspectives among analysts regarding Nutrien’s future performance in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.