Why Nutrien Is Still A Strong Buy

Summary

  • Nutrien's stock price has declined, but the fundamentals of the fertilizer industry remain strong due to geopolitical developments, increased affordability, and the need for higher crop output.
  • Despite poor first quarter results, Nutrien's outlook is positive, with a subdued supply growth situation and strong demand for crop inputs.
  • With a potential mid-term price target of $90, Nutrien offers an attractive risk/reward profile for investors willing to weather the volatility.

Sonne auf gelbe Blume Feld rapeseed oil

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Introduction

It's time to talk about fertilizers. On May 8, I wrote an article titled Nutrien: Undervalued And Oversold Going Into Earnings. In that article, I explained that potash fertilizer fundamentals were strong, using earnings and guidance

This article was written by

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Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NTR, MOS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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