Mosaic downgraded to Neutral from Buy at UBS

UBS analyst Lucas Beaumont downgraded Mosaic (MOS) to Neutral from Buy with a price target of $27, down from $33. The firm sees a more balanced risk/reward at current share levels. The company faces deteriorating phosphate profitability from increased sulfur and ammonia input costs, which is exacerbated by Middle East disruptions pressuring stripping margins, the analyst tells investors in a research note. UBS says improvements in phosphate production has been slow, limiting improvement in fixed cost absorption and Mosaic’s ability to capitalize on high prices.