Sanctions on Russia benefit Nutrien

Article Excerpt

NUTRIEN LTD. $127 remains a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 570.7 million; Market cap: $72.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers. The stock has jumped nearly 40% since the start of 2022. That’s largely in response to economic sanctions on exports of potash and other fertilizers from Russia because of its invasion of Ukraine. That’s pushing up fertilizer prices. Nutrien now plans to increase potash production by 1 million tonnes to a total of 15 million tonnes. That level is 20% more than the company’s 2020 output. Most of that extra production will come in the second half of the year. While the extra supply will dampen prices, Nutrien should continue to benefit from its improving market share. Nutrien is a buy. buy…