Jefferies upgrades Nutrien to Buy on higher fertilizer prices

Jefferies upgraded Nutrien (NTR) to Buy from Hold with a price target of $96, up from $74. The firm says that with the Strait of Hormuz closed and Middle East producers halting production, global fertilizer markets have tightened with prices rising sharply. The conflict has forced domestic spot prices higher as the spring planting season begins, the analyst tells investors in a research note. It increased estimates citing higher pricing outlooks and upgraded Nutrien to Buy. Jefferies’ base case is that the current nitrogen chain “fly-up will be lower, and briefer, than the last episode.”