Cautious Hold Rating on Mosaic Co: Valuation Reflects Improved 2025 Outlook Amid Balanced Risks and Rewards

Wells Fargo analyst Richard Garchitorena maintained a Hold rating on Mosaic Co (MOS – Research Report) yesterday and set a price target of $35.00.

Richard Garchitorena has given his Hold rating due to a combination of factors related to Mosaic Co’s current market valuation and future prospects. Despite increasing estimates for potash volumes and prices, the current stock valuation already reflects these improved outlooks for 2025. The price target has been adjusted to $35, which is based on a 2025 estimated EV/EBITDA multiple of 6.0x, aligning with the higher end of its historical average.
While Mosaic Co has shown strong performance in the first half of the year and has raised its production targets for both phosphate and potash, the valuation suggests limited upside potential. The company’s guidance for increased production and cost improvements are positive, but the risks and potential rewards appear balanced at this time. Therefore, the Hold rating reflects a cautious approach, considering both the potential for growth and the current market conditions.

Garchitorena covers the Basic Materials sector, focusing on stocks such as Mosaic Co, Cf Industries Holdings, and FMC. According to TipRanks, Garchitorena has an average return of -0.4% and a 51.02% success rate on recommended stocks.

In another report released on May 9, CIBC also maintained a Hold rating on the stock with a $33.00 price target.