Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

CF Industries stock falls on analyst downgrades

admin by admin
January 24, 2025
in Stock
0
CF Industries stock falls on analyst downgrades
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

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

Previous Post

UBS sees CNY at risk amid US-China trade policy uncertainty

Next Post

Netflix raised at Bernstein, ‘still not late to the party’

admin

admin

Next Post
Netflix raised at Bernstein, ‘still not late to the party’

Netflix raised at Bernstein, ‘still not late to the party’

Trending News

Cathie Wood says Tesla will hit $2,600, but invests $9M in a different Magnificent 7 stock

Cathie Wood says Tesla will hit $2,600, but invests $9M in a different Magnificent 7 stock

April 8, 2025
USDC market cap surges past $56B as stablecoin demand reaches new highs

USDC market cap surges past $56B as stablecoin demand reaches new highs

February 13, 2025
Centrica hit, Next, JD Wetherspoons rejoice: how UK’s record-breaking April sun impacted business fortunes

Centrica hit, Next, JD Wetherspoons rejoice: how UK’s record-breaking April sun impacted business fortunes

May 8, 2025
Subscribe to Insightful Word


    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025
    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 6, 2025
    Starlink reportedly secures key licence in India, moves closer to launching services

    Starlink reportedly secures key licence in India, moves closer to launching services

    June 6, 2025

    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025

    Latest News

    • China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll
    • FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more
    • Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.