Stockchase Insights BUY
Nutrien Ltd.(NTR-T)
15/01/2024
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
NTR is one of the larger Canadian stocks in Canada, at a $34B market cap. It pays a 3.1% yield, trades at a cheap valuation of 10.6X, however, its forward earnings and sales estimates are fairly muted. Fertilizer prices have been coming down, and this has put pressure on the stock. We expect potash prices to stabilize in the coming year or more, and with NTR's strong free cash flow generation and good management team and balance sheet, it can benefit from a stabilization or even potential increase in potash prices.
Over a long period of time, we would be comfortable buying and holding NTR at these levels given its industry-leading position in the space. We believe some patience will be required, though.
Agriculture
$67.530