RE: RE: AMZInteresting article. Not likely have an immediate impact on SP but augurs well longer term.
Fertilizer suppliers may gain as demand rebounds
Sun Feb 14, 10:37 AM
By Euan Rocha
TORONTO (Reuters) - North American fertilizer makers weathered dismal market conditions in 2009, but stocks in the sector may gain this year as early signs point to a strong recovery in crop nutrient demand.
Shares of Potash Corp , Agrium Inc and Mosaic Co -- the big three of the North American fertilizer industry -- are little changed this year, despite recent data indicating tightening market conditions and stronger demand ahead of the spring planting season.
"We are in the sweet spot of owning fertilizer stocks as we head into the seasonally strong spring season," said Broadpoint AmTech analyst Edlain Rodriguez, who argues that improving global fertilizer demand will lift investor sentiment and propel stocks higher.
Potash Corp, the world's largest fertilizer maker, has consistently outperformed the Standard and Poor's 500 by an average of 12 percentage points between January and April, over the last six years, notes Rodriguez.
Rodriguez, who has "buy" ratings on all of the big three, believes their stocks are likely to rise about 25 percent above current levels, within a 12-month horizon.