JP Morgan Raises 2011 Estimates On Agrium

JP Morgan has published a research report on Agrium, Inc. AGU and is raising 2011 estimates on the company. In the report, JP Morgan writes "Fertilizer fundamentals rest on very healthy crop pricing and excellent farmer economics as we approach the 2011 spring selling season. Harvest month 2011 futures are at near highs versus midseason 2010 price levels: corn $5.56 vs. $5.06, soybeans $12.77 vs. $9.14, and wheat $8.59 vs. $5.86. Accordingly, Agrium should benefit from solid volume growth in its Retail segment and wider margins in its Wholesale fertilizer businesses. Solid fall fertilizer volumes, coupled with heavy forward purchases by customers, have led to higher fertilizer prices entering the New Year. But, we also note that strong fall fertilizer applications could moderate volume growth in the spring, leading Agrium's EPS to fall short of the most aggressive Street agricultural EPS forecasts." JP Morgan maintains its Overweight rating and $95 price target. Agrium closed yesterday at $91.68.