J.P. Morgan Maintains Overweight on CF Industries Holdings

J.P. Morgan is out with its report today on CF Industries Holdings CF, maintaining Overweight. In its report, J.P. Morgan writes, "We raised our 2011 EPS estimate for CF from $16.40 to $21.25, our 2012 EPS forecast from $14.40 to $17.00 and our 2013 projection from $13.20 to $17.25. Our 2011 estimate increase largely reflects a continuation of healthy fertilizer prices through 2H:11. The increases in the out years reflect the effects of a 14% reduction in outstanding shares due to share repurchase activity. We expect CF to generate 10% of its share price in free cash flow in 2012. CF sells at 8.5x EPS and 4.0x EBITDA. Each EV/EBITDA multiple point turn is about $30-$35. We rate CF Overweight." At the time of posting, shares of CF were trading pre-market at $144, down 1.81% from Friday's close.