KeyBanc initiated coverage on CF Industries Holdings Inc. with an underweight rating. The firm set a price target of $115.00, implying significant downside from current levels.
Analysts expect a considerable decline in nitrogen prices over the next two years. New supply entering the market is projected to reduce the company's earnings. KeyBanc noted that the company's earnings outlook diverges negatively from other agricultural input firms.
This rating follows a recent downgrade to Hold by Freedom Broker. That firm cited nitrogen prices returning to levels seen before global conflicts. CF Industries management maintains a positive outlook, pointing to strong cash generation and a tight global nitrogen market.