- Agrium (AGU -5.8%) shares suffer their biggest two-day loss since August after Scotiabank downgrades the company, citing lower nitrogen fertilizer prices and a weaker agricultural outlook beyond 2016.
- The new Sector Outperform is still the equivalent of a Buy rating, but AGU had previously been on Scotiabank’s Focus List; the downgrade comes a day after Hedgeye recommended shorting the stock.
- Even with the downgrade, Scotiabank slams Hedgeye's criticisms, saying that the reach the latter's $4/share EPS scenario in 2017, retail volume would need to be reduced by 25% alongside the worst quarterly margins since 2009, while AGU's actual retail margins have been rising over the past four years.
- Now read Cowen cuts Potash, Mosaic, Intrepid Potash, CF Industries