Connect with us

Hi, what are you looking for?

Stock

CF Industries stock falls on analyst downgrades

Investing.com — Shares of CF Industries (NYSE:CF) dropped 4% after receiving downgrades from JPMorgan and Scotiabank (TSX:BNS), signaling a bearish outlook from analysts on the company’s future performance.

JPMorgan’s Jeffrey Zekauskas changed the firm’s stance on CF Industries from Neutral to Underweight, setting a new price target at $75, down from $82. The downgrade was primarily attributed to concerns over potential increases in domestic natural gas prices, which could impact earnings estimates for the coming years and affect the cost of producing nitrogen fertilizers, a key product for CF Industries. Zekauskas highlighted the risks, stating, “We think there is more downside risk than upside appreciation potential in the shares for CF shares at current price levels.”

The analyst also pointed out the possibility that an increase in corn planted acres in the United States for 2025 might pressure corn prices. Geopolitical conflicts in Europe and changes in trade could further exacerbate pessimism regarding the US grain supply and demand balance. With CF Industries trading at a multiple higher than its historical average, the analyst believes the current valuation does not justify the potential risks.

Scotiabank followed suit, downgrading CF Industries to sector underperform from sector perform, with a price target of $88. Analyst Ben Isaacson expressed growing conviction that nitrogen margins could face pressure soon, which would likely affect companies focused solely on nitrogen.

The downgrades suggest that industry analysts are anticipating a challenging period ahead for CF Industries, particularly in terms of input costs and market dynamics that could squeeze margins. As the market prices in these concerns, investors have reacted by pulling back from the stock, reflecting the more cautious stance of the analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post appeared first on investing.com

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    You May Also Like

    Investing

    Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...

    Investing

    Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...

    Investing

    The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...

    Investing

    NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...




    Disclaimer: Oldamericanbroker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.


    Copyright © 2025 Oldamericanbroker.com