Will Nutrien Stock Benefit from tight Fertilizer Supplies?

Nutrien Ltd Rated as a "Strong Buy" on Strong First-Quarter Performance

NTR:CA Ratings by Stock Target Advisor

Nutrien Stock could rise on tight supply

Nutrien Ltd, the world’s largest fertilizer company, is experiencing a dramatic increase in its stock price due to short supply in the fertilizer market. The company’s Chief Executive Officer, Ken Seitz, said in a recent interview that shipments out of major exporters Belarus and Russia are still partially constrained, and many alternative outlets for the product have been exhausted. This is causing a shortage of potash, a key fertilizer nutrient, which is expected to continue throughout 2023.

The Canadian company is monitoring the situation closely and will adjust its planned ramp-up of potash production as farmer demand changes. According to Seitz, the company expects the global supply of potash to remain constrained this year, which creates a gap in the market. As a result, Nutrien’s stock price is likely to continue increasing as investors anticipate a rise in demand and higher prices for the commodity.

The relationship between Nutrien and BHP Group Ltd., which is developing the $5.7 billion Jansen project close to Nutrien’s mines in western Canada, was also discussed in the interview. Two years ago, the two companies held talks about a potential partnership, and BHP was said in January to have been interested in doing more deals with companies like Nutrien. Seitz declined to comment on whether the companies have been in talks more recently but said that the relationship with BHP is good, and both companies are focused on their respective work at the moment.

Investors are bullish on Nutrien’s future prospects due to the increasing demand for food worldwide and the need for fertilizers to support crop growth. Nutrien’s dominant position in the fertilizer market makes it well-placed to benefit from rising prices and demand for the commodity. The company’s long-term outlook is positive, with the potential for continued growth and profitability.

Nutrien’s stock price is expected to increase due to short supply in the fertilizer market, with a gap in the market expected to continue into 2023. The company’s dominant position in the fertilizer market and its ability to adjust production to meet farmer demand make it well-positioned to benefit from rising prices and demand for the commodity. Nutrien’s long-term outlook is positive, with the potential for continued growth and profitability.

NTR stock Forecast & Analysis

According to 15 analysts, Nutrien Ltd’s average analyst target price is CAD 113.21 for the next 12 months, with a Buy rating. Stock Target Advisor’s analysis is Bullish based on 10 positive signals and 4 negative signals. As of the last closing, Nutrien Ltd’s stock price was CAD 98.07. The stock price has decreased by -4.88% over the past week, -7.76% over the past month, and -22.48% over the last year.

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