CF Industries initiated with an Overweight at Wells Fargo

Wells Fargo analyst Richard Garchitorena initiated coverage of CF Industries with an Overweight rating and $110 price target. CF enjoys a significant North American cost advantage vs. both its European and global peers and Garchitorena sees CF generating significant free cash flow, which the company plans to return to shareholders, the analyst tells investors in a research note. Additionally, the shift towards decarbonization and blue/green ammonia applications provides CF the opportunity to tap into the growing hydrogen market, the analyst contends.