HSBC analyst Santhosh Seshadri downgraded CF Industries to Hold from Buy with a price target of $90, down from $104. The analyst sees "risks to demand recovery" for chemicals in 2023 that might temper price and volume expectations as well as earnings growth. The China reopening is potentially negative for phosphates but positive for ammonia and nitrates, the analyst tells investors in a research note. HSBC says the market appears to be optimistic about a 2023 recovery on pent-up demand, strong U.S. corn acreage estimates and high crop prices. As such, it sees growing risks to consensus estimates and cash flow generation.
Published first on TheFly
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