Deutsche Bank Maintains Hold Rating On MOS

Deutsche Bank is maintaining its Hold rating on shares of Mosaic Co. MOS. “We view the overturning of a preliminary injunction blocking the extension of Mosaic's South Fort Meade phosphate rock mine as a modest positive,” Deutsche Bank writes. “While the outcome (and timing) remains uncertain as litigation will continue in a lower court, new legal guidance by a federal appeals court appears to have improved the likelihood that Mosaic's wetlands permit will be upheld. “If the permit is invalidated, permanent shutdown of South Fort Meade would reduce Mosaic's finished phosphate production by 1MM m.t and operating profits by $250-$300MM, or $0.39-$0.47, in 2H11. Due to ongoing operations in the uplands portion of South Fort Meade, coupled with use of existing inventories and other mitigation strategies, we expect the company will continue to maintain sufficient levels of finished phosphate production during the 90-day period of additional review of the wetlands permit.” Mosaic closed Monday at $78.20.