Yara International (0O7D – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Lisa De Neve from Morgan Stanley maintained a Hold rating on the stock and has a NOK365.00 price target.
Lisa De Neve’s rating is based on a combination of factors that reflect both positive and cautious elements in Yara International’s recent performance and future outlook. The company reported a significant beat in its first quarter earnings, with adjusted EBITDA and EPS surpassing consensus expectations by 18% and 68%, respectively. This was driven by strong growth in Crop Nutrition Volumes, particularly in Europe, and improved product margins.
Despite these positive results, there are several factors that warrant a Hold rating. The company’s forward guidance indicates higher gas costs in the upcoming quarters, which could impact profitability. Additionally, while the company has limited exposure to U.S. tariffs, the ongoing discussions around clean ammonia projects and EU fertilizer import duties on Russia introduce uncertainties. These elements suggest that while Yara International has shown strong performance, potential risks and cost pressures justify a cautious approach.