Does MM like Nutrien (NTR US)?
James do you think NTR (Nutrien) is a buy at the moment. Is there a better buy to get exposure to the fertiliser industry in the US?
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Answer
Hi Arthur,
We actually had a Zoom hook up with the Nutien (NTR US) management about 10 days ago as we delved more into Elders as a potential investment. Their first half result that was released recently was a record and they guided well for the 2H. In short, we believe the $US50bn business represents fair value ~$US90 trading on a valuation under 17x but after rallying over 30% in less than 6-weeks we would leave some $$ free to average into weakness down towards $US86-88 area, or ~5% lower.
Two other major players in the US market are the smaller CF Industries (CF US) and the Mosaic Company (MOS US) of which we prefer CF even though Mosaic is cheaper, similar to NTR we like CF into weakness between $US95 & $US100, again ~5% lower.
