Friday, January 8, 2010

Citi: "Agrium upgraded, best way to play ag recovery" (AGU)

The stock is up $1.75 at $68.74.
From the Financial Post:

Calling Agrium Inc. the best way to play a 2010 recovery in agriculture, Citigroup upgraded shares of North America’s largest ag retailer to Buy from Hold. Analyst P.J. Juvekar also hiked his price target on the stock to US$82 from US$64.

“There are signs of a nascent volume recovery after farmers took a fertilizer holiday in 2009,” the analyst said in a research note. “Farmers and retailers, who got burned when fertilizer prices collapsed in 2008-09, are likely to slowly rebuild inventories.”

He highlighted the fact that phosphate volumes have already recovered, while potash demand is set to increase year-over-year in the first quarter....MORE