J.P. Morgan Raises PT on Agrium to $105 (AGU)

J.P. Morgan is out with its report today on Agrium AGU, raising its price target from $95 to $105. In a note to clients, J.P. Morgan states, "We rate Agrium Overweight. AGU shares currently trade at an Enterprise Value/EBITDA multiple of 7.3x our 2011 EBITDA estimate. We raised our December 2011 price target for Agrium shares to $105 from $95. Our $105 price target represents an EV/EBITDA multiple of 8.0x based on our 2011 estimates, and compares to range of 7.3x-12.1x (an average of approximately 9.1x) for Agrium's agricultural chemical peers. We believe that AGU shares are likely to trade at roughly its peer multiple average due to Agrium's broad wholesale fertilizer portfolio, balanced by its more stable retail agricultural products business." At the time of posting, shares of AGU were trading pre-market at $94.97, down 1.20% from Wednesday's close.