The Mosaic Downgraded by UBS AG to Neutral (MOS)

The Mosaic (NYSE:MOS) was downgraded by UBS AG from a “buy” rating to a “neutral” rating in a research note issued on Wednesday, reports. They currently have a $41.50 price objective on the stock, up from their previous price objective of $30.22. UBS AG’s price target indicates a potential downside of 0.91% from the stock’s previous close.

The analysts wrote, “We expect global potash fertilizer prices could decline from ~$400/ton to ~$300/ton near-term as Uralkali plans to gain global share following issues with its Russian partners and Chinese customers (who are becoming more self-sufficient)…Mosaic LTM gross profit is ~50/50 potash/phosphate, and we are not changing phosphate assumptions. MOS has been unsuccessful so far in negotiating to buy back stock from Cargill related owners (30% interest), which may be fortuitous in hindsight. We would expect MOS to be buyer in open market after standstill expires in Nov, and had already modelled 10% repurchase over 12mo starting Nov.”

The Mosaic (NYSE:MOS) traded down 1.65% on Wednesday, hitting $41.19. The Mosaic has a 52-week low of $39.95 and a 52-week high of $64.65. The stock’s 50-day moving average is currently $54.00. The company has a market cap of $17.540 billion and a price-to-earnings ratio of 9.48.

The Mosaic (NYSE:MOS) last issued its quarterly earnings data on Tuesday, July 16th. The company reported $1.14 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $1.14. The company had revenue of $2.69 billion for the quarter, compared to the consensus estimate of $2.82 billion. During the same quarter in the previous year, the company posted $1.25 earnings per share. The company’s revenue for the quarter was down 4.5% on a year-over-year basis. On average, analysts predict that The Mosaic will post $4.49 earnings per share for the current fiscal year.

MOS has been the subject of a number of other recent research reports. Analysts at JPMorgan Chase & Co. set a $50.00 price target on shares of The Mosaic in a research note to investors on Wednesday. Separately, analysts at Morgan Stanley downgraded shares of The Mosaic from an “overweight” rating to an “equal weight” rating in a research note to investors on Wednesday. They now have a $70.00 price target on the stock. Finally, analysts at Goldman Sachs Group Inc. downgraded shares of The Mosaic from a “buy” rating to a “neutral” rating in a research note to investors on Tuesday.

Twenty analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $59.94.

The company also recently announced a quarterly dividend, which is scheduled for Thursday, August 15th. Shareholders of record on Thursday, August 1st will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.39%. The ex-dividend date is Tuesday, July 30th.

The Mosaic Company (NYSE:MOS) is a producer and marketer of combined concentrated phosphate and potash crop nutrients for the global agriculture industry.

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