JP Morgan Upgrades Agrium to Overweight (AGU)

JP Morgan upgraded Agrium AGU to Overweight, citing rising grain prices. Agrium's price target was also raised to $75, up from $70. JP Morgan analysts said, "Grain prices have risen, the harvest is likely to be early, and so agricultural fundamentals have strengthened. The farmer has prospered and is ready to purchase product in quantity before year-end. The market values of the fertilizer companies have risen, and the natural analytical question arises: how do we now appropriately invest in the sector? It is reasonable to maintain a presence in the sector with grain prices high and much earnings leverage possible beyond consensus estimates in the event of a strong planting season. Our idea is to seek both relative and absolute measures of value that could provide a footing for enhanced performance in strong markets and less value at risk in weak ones." Shares of Agrium are up 5% today to $69.19 on the upgrade.