June 16 (Reuters) - Citigroup added Terra Industries Inc (TRA.N: Quote, Profile, Research, Stock Buzz) to its top-picks live list, saying it sees stronger earnings for the fertilizer firm over the next 12 months as farmers shift to fertilizer intensive corn production.
"Midwest floods have negatively impacted the 2008 corn crop... We expect U.S. farmers to respond by shifting acreage back into fertilizer intensive corn in spring-09," analyst Brian Yu wrote in a note to clients.
The analyst, who has a "buy" rating on Terra, also cited continuing strength in nitrogen product prices as one of the catalysts for the stock.
Yu said he expects the U.S. corn acreage to snap back to 94 million acres or more in 2009.
Shares of Terra were up 5 percent at $52.12 in morning trade on the New York Stock Exchange.
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