J.P. Morgan Reports on CF Industries

J.P. Morgan commented on CF Industries CF in a report released today. In the report, J.P. Morgan was positive in its assessment of the company. J.P. Morgan writes, "We upgrade shares of CF Industries from Neutral to Overweight, given its valuation, solid cash flow characteristics, strong crop prices, and a favorable outlook for agricultural fundamentals in the year ahead. We forecast CF Industries 2011 EPS of $16.40 reflecting solid pricing in UAN solutions and other nitrogen products. We believe that phosphate pricing is also likely to remain strong for the balance of 2011 due to the solid crop pricing environment. We project 2012 EPS of $14.40 which accounts for slightly lower nitrogen and phosphate product margins versus robust realizations in 2011. Our 2013 EPS projection is $13.20. " J.P. Morgan currently has an Overweight rating on CF Industries and a price target of $170. Shares of the company closed at $139.06 on Friday, down from $140.67 at open.