Raymond JamesUnable to post the entire article so here's the link. GLTA
https://www.adviceforinvestors.com/news/bargain-stocks/fertile-ground-to-plant-some-seed-money-in-2/#gsc.tab=0
Fertile ground to plant some seed money in
If you are searching for fertile ground to plant some seed money in, Vancouver-area Raymond James Financial analyst Steve Hansen encourages you to skip the ground and go straight to the fertilizer.
Mr. Hansen first joined Raymond James in 2005, where he is responsible for covering the transportation, chemicals, and agricultural and agribusiness industries. He also previously covered the paper and forest products industry at Morningstar.
The analyst highlights phosphate-based fertilizer producer Itafos Inc. (TSX/VEN—IFOS) as a "strong buy", his firm's highest ranking and equivalent to a "best buy". He explains that his optimism is based on the company achieving "another excellent quarter" in the first three months of 2022, sustained phosphate price momentum, and management guidance hikes suggesting solid debt-elimination and growth prospects.
"Coupled with several strategic initiatives designed to de-risk the platform and surface additional value (such as through the sale of non-core assets), we believe the outlook is catalyst-rich with attractive upside," he says.
Planting seeds in the Americas
Although it is listed on the TSX Venture Exchange, Itafos is headquartered in Houston, Tex. (and incorporated in Delaware). The company's operations is made up of several segments, including Conda, a vertically-integrated phosphate business able to produce 550,000 tonnes a year of fertilizer products operating in Idaho, and Arraias, a similar business located in Brazil with a capacity of 500,000 tonnes per year.
In addition, the company owns and operates its own phosphate mines (Santana in Brazil, with another project, Farim, in Guinea-Bissau) and a rare earth elements (REEs, used in batteries) mine, Araxa, in Brazil.
Earnings tripled year-over-year
Mr. Hansen points out that Itafos's overall adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter almost tripled year-over-year, ballooning by 192.3 per cent to $60.3 million. Although the analyst had forecast higher, he says the actual figure shows "clearly an outstanding period that's beginning to demonstrate the company's underappreciated earnings power in the current cycle."