UPDATE: Deutsche Bank Raises PT on Mosaic to $87 (MOS)

Deutsche Bank is out with its report today on Mosaic MOS, raising its PT from $80 to $87. In a note to clients, Deutsche Bank writes, "Mosaic shares fell 2% following its FQ3 beat as a number of company-specific factors offset bullish ag industry sentiment stemming from news of lower corn stocks. In our view, the weakness reflected the perception that there are better ways to gain ag exposure given uncertainties around the pending Cargill split-off transaction and litigation (S. Fort Meade, Esterhazy tolling agreement). With the shares trading at 15.7x (cal) '11E EPS, an 11% premium to the S&P vs a 5-yr avg. premium of 0%, we believe Mosaic shares are fairly valued. Maintain Hold. Our $87 PT is based on our DCF-derived value (WACC 10% {RFR 4%, Beta 1.25, ERP 5%} terminal growth 2%)." At the time of posting, shares of MOS were trading pre-market at $79.19, up 0.56% from Thursday's close.