Q: Nutrien looks reasonably priced on several indicators. It has been selected a Top Pick 4 times on BNN over the past 4 months. Why does the share price continue to fall? What in your opinion would be a good entry price?
Thanks for your help,
Mike
Thanks for your help,
Mike
5i Research Answer:
NTR is cyclical, and has been hit recently with a big decline in fertilzer contract prices. But, with a 3% dividend and at 8X earnings, much of the cyclicality is likely priced in. EPS is expected to decline this year on pricing, and decline slightly again in 2024. We think $92 would be quite attractive for investors with a decent timeframe.