JP Morgan Believes CF Could Experience A Normalization Of Fertilizer Volumes During H2

Analysts at JP Morgan reiterate their "neutral" rating on CF Industries Holdings Inc CF, while raising their estimates for the company. The target price for CF has been raised from $65 to $100. According to JP Morgan, “CF Industries is favorably positioned for the second half of 2010 due to a confluence of factors. The corn price is currently $4.36 per bushel versus a price of $3.74 per bushel at the beginning of July. Drought conditions in Russia have lifted wheat prices, pulling up the prices of competing row crops, corn and soybeans. Flooding in Asia has heightened concerns over food supply, and the USDA has increased its expectation for exports of US crops for the coming year. Investors continue to monitor the current domestic corn crop as realized yields could have significant implications for the 2010/2011 supply/demand balance.” “We believe that CF could experience a normalization of fertilizer volumes during 2H:10 due to a likely early corn harvest and a longer fall 2010 fertilizer application window,” the analysts add. JP Morgan has raised its EPS estimates for 2010 and 2011 from $7.25 to $7.50 and from $7.00 to $7.75, respectively. More Analyst Ratings here