CF Industries Stock Has A 20% Upside Driven By Higher Demand For Nitrogen Fertilizer

SectorFinancial Markets
CountryMiddle east

BRAZIL - 2020/05/18: In this photo illustration a CF Industries Holdings logo is seen displayed on a ... [+] smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images We believe that CF Industries stock (NYSE: CF) has an upside potential of 22% in the near term. CF trades at $32 currently and it has lost 22% in value year-to-date.

It traded at a pre-Covid high of $39 in February and is 18% below that level now. Also, CF stock has gained 47% from the lows of $22 seen in March 2020, after the multi-billion dollar stimulus package announced by the U.S. government which has helped the stock market recover to a large extent. The stock is lagging the broader markets (S&P 500 is up about 60%), as investors are cautious about the impact of economic uncertainty on the fertilizer industry, in general. The company is a Global Leader in Nitrogen Fertilizer Manufacturing and Distribution. Despite the Covid-19 crisis, it has managed to conduct its operations smoothly and there was no meaningful impact in customer demand either, as fertilizers and farming-related activities are classified under essential businesses. CF more...