Morgan Stanley Maintains Overweight Rating On Mosaic

According to Morgan Stanley, Mosaic Company MOS is maintaining its Overweight rating following F3Q11 results that came in ahead of both our and the consensus expectations, in our case largely because of lower phosphate COGS. Morgan Stanley reported that in general, the quarter was marked by volume at the low end of company guidance, but price at the high end. “Leaving the quarter aside, Mosaic once again increased its expectations for global phosphate and potash demand for C2011, moving incrementally closer to our Bull Case. We do not expect a meaningful share price reaction from F3Q results and note that the plethora of USDA data coming out tomorrow morning is more likely to drive overall sentiment than a backward looking quarter that is divorced from spot fundamentals.” Mosaic Company closed yesterday at $80.45.