Mosaic upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Mosaic (MOS) to Outperform from Sector Perform with a price target of $40, up from $30. The firm expects phosphate markets to “remain tight” given steady demand growth and limited supply, supporting elevated prices. Mosaic trades “at just” 4-4.5 times on forward 12-month spot EBITDA, the analyst tells investors in a research note. RBC also anticipate positive catalysts with several operational initiatives ongoing, including increased phosphate production, lower potash costs, and higher Brazil distribution volumes, as well as potential monetization of the company’s non-core assets.