Nutrien at an ‘attractive entry point,’ farmer demand re-emerging, says Raymond James

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On Wednesday, Nutrien reported earnings data, with its Q1 EPS of $1.11, $0.40 worse than the analyst estimate of $1.51. Revenue for the quarter came in at $6.11 billion versus the consensus estimate of $6.39 billion.

Raymond James analysts told investors the miss was tough, but farmer demand is re-emerging, and they see an attractive entry point.

There are “increased signs of: 1) farmer engagement/procurement after a lengthy period of dormancy; 2) depleting NPK inventories across key channels; 3) gradual stabilization in key price benchmarks; and 4) most recently, a widespread flush of Street/ investor expectations following NTRs 1Q23 print,” wrote the analysts.

“While still too early to ‘call the bottom’ on this geopolitically-entangled, weather-amplified cycle, we feel that the recent pullback in NTR shares provides an attractive entry point for long-term investors.”