Look beyond Nutrien’s CEO turmoil

Article Excerpt

NUTRIEN LTD. $90 remains a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 570.7 million; Market cap: $51.4 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.6%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 27 million tonnes annually. The stock fell in early January 2022 after Mayo Schmidt abruptly resigned as the company’s chairman and chief executive officer. This follows the sudden departure of Chuck Margo as CEO in April 2021. While that adds risk, Nutrien’s long-term prospects remain bright as high crop prices and limited capacity continue to support fertilizer prices. The company’s earnings will probably soar 50% to $11.29 U.S. a share in 2022, and the stock trades at just 6.4 times that forecast. The $1.84 U.S. dividend yields 2.6%. Nutrien is a buy. buy…