CVR Energy (NYSE:CVI) is considering the spin-off of its interests in its nitrogen fertilizer business to create a pure-play fertilizer company as well as a pure-play renewables and refining company. CVR Energy holds interests in its nitrogen fertilizer business via the general and limited partner interests in CVR Partners, LP (NYSE:UAN).
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CVI stock was up by more than 5% in Tuesday’s pre-market trading as of writing. Billionaire investor Carl Icahn has over 70% stake in CVR Energy. It is the second-largest holding of Icahn Enterprises.
The company stated that if the transaction goes through then CVR Energy stockholders would own CVI shares and shares of the holding company that holds “CVR Energy’s current ownership of the general partner interest in, and approximately 37 percent of the common units (representing limited partner interests) of, CVR Partners.”
CVI stock has skyrocketed nearly 132% this year as the company has been a major beneficiary of rising energy and fertilizer prices due to the Russia-Ukraine war.
Is CVI Stock a Buy?
Wall Street currently has a Moderate Sell consensus rating on CVI stock based on one Hold and two Sells. The average CVR Energy stock price target of $30.50 suggests a possible downside of 21.7% from current levels.
