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By Davit Kirakosyan
Christopher Parkinson from Mizuho Securities provided company commentary on Nutrien Ltd. (NYSE:NTR) following its two-day analyst event.
The brokerage shared the following four key highlights from the event:
(1) The company announced plans to ramp its annual production to 18mmt (vs. current 2022 exit rate of ~15mmt) by 2025.
(2) There are several updates to long-term EBITDA potential, including a $9.2 billion mid-cycle scenario.
(3) A building focus on low-CO2 NH3 facilities - these efforts appear to be the nucleus of ESG targets.
(4) Ample free cash flow optionality, even after considering share buy-backs, dividend increases, and growth initiatives.
The brokerage reiterated its Neutral rating and $128 price target on the company’s shares.
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