Agrium Inc. (NYSE: AGU - News), based in Alberta, Canada, is a major retailer of agricultural products and services in North and South America, a leading global wholesale producer and marketer of all three major agricultural macronutrients such as nitrogen, potash and phosphate, and a premier supplier of micronutrients and specialty fertilizers.
Agrium is growing through acquisition and organic expansion. The acquisition of United Agri-Products (UAP) is driving revenues and profits supported by an expanded product line in the major business segment. However, the company is affected by the global credit crunch resulting in postponement of fertilizer purchases by farmers.
Nevertheless, Agrium expects the situation to improve in the near future. The company also has a significant free cash flow. Therefore, we rate the shares a Buy with a target of $43.00.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment