Analyst Salvator Tiano of Bank of America Securities reiterated a Buy rating on Mosaic Co, with a price target of $49.00.
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Salvator Tiano has given his Buy rating due to a combination of factors that indicate potential for future growth despite recent operational challenges. The Mosaic Co faced higher operational costs and production issues in the second quarter, which negatively impacted their EBITDA results. However, management is optimistic about overcoming these hurdles and improving performance in the latter half of the year, particularly as they address phosphate production concerns.
Furthermore, Tiano highlights several positive indicators for the company’s future. These include potential improvements in ammonia production, expectations of higher EBITDA in the Fertilizantes segment, and anticipated price increases for phosphate. Additionally, the company’s strategic moves, such as reducing US phosphate imports due to tariffs, suggest a focus on optimizing operations. Despite the current setbacks, the risk-reward balance appears favorable, justifying the Buy rating with a price objective of $49.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $46.00 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MOS in relation to earlier this year.