Oppenheimer has recently adjusted its rating on CF Industries (CF, Financial), downgrading the stock from "Outperform" to "Perform." Analyst Kristen Owen highlighted the complexities faced by the company due to the intricate effects of retaliatory tariffs impacting grain demand, energy, and fertilizer prices, which present challenges that are not straightforward to quantify.
Although CF Industries does not face direct threats to its supply chain from the existing tariff structure, the broader economic implications are influencing investor sentiment. Particularly concerning are the increased costs and tariff uncertainties impacting the company's joint low-carbon ammonia venture with Jera and Mitsu, in which CF holds a 40% equity stake. This venture initially seemed more financially viable than anticipated, but rising project expenses and tariffs have dampened investor enthusiasm.
Oppenheimer also expressed concerns over the market's cautious stance towards CF's blue ammonia facility, attributing this to the current macroeconomic environment. As a result, the firm forecasts that CF Industries might experience a period of limited stock movement, or a range-bound market phase, in the near future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for CF Industries Holdings Inc (CF, Financial) is $88.37 with a high estimate of $111.00 and a low estimate of $78.00. The average target implies an upside of 17.62% from the current price of $75.13. More detailed estimate data can be found on the CF Industries Holdings Inc (CF) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, CF Industries Holdings Inc's (CF, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CF Industries Holdings Inc (CF, Financial) in one year is $77.10, suggesting a upside of 2.62% from the current price of $75.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CF Industries Holdings Inc (CF) Summary page.
