Wolfe downgrades CF Industries on lack of upside after rally

Wolfe Research downgraded CF Industries (CF) to Peer Perform from Outperform without a price target Given the stock’s recent rally, the firm fails to model enough upside to justify an Outperform rating. CF”s risk/reward is now “symmetric,” and headline risk regarding compressing natural gas spreads will likely increase in the second half of the year, the analyst tells investors in a research note. Wolfe also believes U.S. and Qatari liquified natural gas headline risk rhetoric will increase into 2026. It still views CF as the best-in-class global natural gas producer with the most attractive free cash flow profile, but feel it is now prudent to await a new entry point.