On Friday, BMO Capital adjusted its outlook on Nutrien Ltd. (NYSE:NTR), a leading provider of crop inputs and services, by reducing its price target on the company's shares to $75 from the previous $80. Despite the target adjustment, the firm retained its Outperform rating on the stock.
The price target revision comes as BMO Capital anticipates a prolonged period before Nutrien's Retail segment achieves a sub-$2 billion level.
The analyst at BMO Capital expressed that while the long-term earnings estimates for 2025 and 2026 remain largely unchanged, the firm opted to slightly decrease the target multiple to 7.5-8 times the projected 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA).
The analyst noted that Nutrien currently holds significant value, but realizing this value may take time as the company is seen as a "show-me story."
The firm expressed hope that the recent executive leadership changes at Nutrien could act as a catalyst for the company to strengthen its narrative.
Nutrien has not provided any public response to the revised price target or the comments from BMO Capital at this time. The company's stock performance in the upcoming period may reflect the market's reaction to these developments and the potential impact of the C-suite changes mentioned by the analyst.
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