Scotiabank has upgraded CF Industries (CF, Financial) from Underperform to Sector Perform while maintaining the price target at $81. Analyst Ben Isaacson noted that the stock's performance in recent months has validated the initial tactical downgrade to Sell issued in January. The firm now anticipates a 20% increase in stock value, aligning with its mid-cycle fair value assessment.
The recent approval of CF Industries' $4 billion Blue Point clean ammonia project played a role in this upgrade. Isaacson remarked that this development has addressed one of the negative catalysts previously identified. However, it was also noted that investors, whether correct or not, have shown a preference for stock buybacks over expanding supply.
