Goldman Sachs Says Buy CF (CF)

Goldman Sachs is out with a research report saying to buy shares of CF Industries Holdings, Inc. CF on strong demand for its products. In a note to investors Goldman writes, "We continue to expect strong performance for fertilizer stocks through the fall season as a very robust fundamental backdrop drives earnings upside broadly across the group. The crux of our bullish view is very strong pricing momentum that has materialized in nitrogen (N) and phosphate (P) in particular on three drivers: (1) a price rally across the ag complex should drive exceptional farmer returns and inspire increased investment in crop production, (2) an anticipated large US harvest plus increased winter wheat planting is positive for nutrient demand, and the expected early timing should create a very favorable window for fertilizer application this fall, and (3) solid export demand for fertilizers." Goldman goes on to say, "We reiterate our Buy rating on CF following the company’s New York City investor day. CF is, in our view, rightfully bullish on near-term nutrient demand due to the favorable demand backdrop and margins should reflect favorable low natural gas prices and further cost savings ahead." Shares of CF lost 34 cents yesterday to close at $86.74.