Jefferies lifts Nutrien PT, cites stronger fertilizer fundamentals

By Reuters News

** Jefferies raises price target for US-listed shares of Canadian agrichemicals company Nutrien , NTR.TO to $71 from $63

** Cites NTR's potential to benefit from a rebound in agricultural prices driven by demographic trends and biofuel demand, as well as stronger fertilizer demand amid water scarcity and limited arable land

** New PT represents an upside of 5.2% to the stock's last close on Friday

** Jefferies expects potash markets to remain supported by strong offshore demand and higher prices, while fertilizer prices stay elevated due to higher input costs, supply constraints and Middle East tensions

** "NTR's Trinidad nitrogen (operations) closure likely improves free cash flow, while ongoing portfolio reviews likely support deleveraging, buybacks, and higher-return growth opportunities," Jefferies adds

** However, it expects near-term nitrogen earnings to face pressure from lower volumes and higher costs

** 14 out of 24 brokerages rate the stock "buy" or higher, 7 "hold" and 3 "sell"; their median PT is $79.80 - data compiled by LSEG

** Including session's moves, NTR up 9.9% YTD

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