Analysts rate Nutrien Ltd.(NTR:CA:TSX) with a Strong Buy, $101 Target

STA Research
by: STA Research

Analysts rate Nutrien Ltd. with a Strong Buy rating and a 12-month average target price of $101.28 per share.

STA research initiates with an Underperform rating on Nutrien Ltd.  and sets the target price at $100 on the company’s stock.

Based on the Nutrien Ltd stock forecasts from 8 analysts, the average analyst target price for Nutrien Ltd is CAD 101.28 over the next 12 months. Nutrien Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Nutrien Ltd is Bullish , which is based on 12 positive signals and 2 negative signals. At the last closing, Nutrien Ltd’s stock price was CAD 132.39. Nutrien Ltd’s stock price has changed by +5.27% over the past week, +35.70% over the past month and +88.67% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

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