Investors should buy CF Industries because of a better pricing environment for fertilizer, according to Goldman Sachs, which upgraded the company to buy from neutral.
"We expect pricing to materially improve in 2018+ as the global nitrogen market experiences a period of more balanced supply/demand following several large global capacity expansion
projects in recent years," analyst Adam Samuelson said in a note Monday. "We believe the recent turn in sentiment is overdone and see an attractive tactical entry point in shares."
Shares of the Illinois-based nitrogen fertilizer manufacturer and distributor were up more than 2 percent in midday trading Monday.
CF shares 5-day performance