CF Industries price target raised to $125 from $100 at RBC Capital

RBC Capital analyst Andrew Wong raised the firm’s price target on CF Industries (CF) to $125 from $100 and keeps a Sector Perform rating on the shares as part of a broader research note previewing Q1 results in Fertilizers. Fertilizer prices were higher than expected in Q1, as the Iran war restricted exports from the Middle East, a key region for nitrogen and phosphate supply, and Nitrogen in particular has been impacted, with significantly higher prices due to restricted supply and higher LNG prices pushing up global marginal costs, the analyst tells investors in a research note. RBC adds it sees high nitrogen prices benefiting CF and anticipates the company should generate strong cash flows even while spending on the Blue Point ammonia project.