Scotiabank downgrades Nutrien on valuation, lack of catalysts

Scotiabank downgraded Nutrien (NTR) to Sector Perform from Outperform with an unchanged price target of $62. The firm thinks investors should lighten exposure to fertilizer stocks going forward. Farmer economics are good but not great, and fertilizer prices have limited upside near-term, the analyst tells investors in a research note. Scotiabank sees limited portfolio growth for Nutrien, particularly in Retail, and sees an investor preference for the capital return profile of its peers, particularly when it comes to buyback potential relative to market cap. Nutrien also has few company-specific catalysts to move the stock forward, it contends.