Agrium Inc. to Benefit From Shale Gas Production (AGU, GS)

Agrium Inc.'s AGU management has given an upbeat appraisal of the company’s intermediate-term growth trajectory. The company has highlighted that its outlook for U.S. crop production remains positive despite recent rainfall. However, its forecast for Western Canada and South America is mixed due to worries about weather. The company also thinks that expansion of shale gas production has changed the competitive nitrogen dynamic in its favor. Agrium (AGU) management is also confident of achieving its EBITDA target of $1 billion. Goldman Sachs GS, in its recent report, has stated that it remains on the sidelines with regard to fertilizer stocks, as fertilizer prices are likely to be range bound until fall application season. Goldman Sachs (GS) has not rated Agrium Inc.