Raymond James upgraded to Nutrien (NYSE:NTR) to Outperform from Market Perform with an $85 per share price target in a note Friday.
On Wednesday, Nutrien reported earnings data, with its Q1 EPS of $1.11, $0.40 worse than the analyst estimate of $1.51. Revenue for the quarter came in at $6.11 billion versus the consensus estimate of $6.39 billion.
Raymond James analysts told investors the miss was tough, but farmer demand is re-emerging, and they see an attractive entry point.
There are "increased signs of: 1) farmer engagement/procurement after a lengthy period of dormancy; 2) depleting NPK inventories across key channels; 3) gradual stabilization in key price benchmarks; and 4) most recently, a widespread flush of Street/ investor expectations following NTRs 1Q23 print," wrote the analysts.
"While still too early to 'call the bottom' on this geopolitically-entangled, weather-amplified cycle, we feel that the recent pullback in NTR shares provides an attractive entry point for long-term investors."