Mosaic downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Mosaic (MOS) to Sector Perform from Outperform with a price target of $30, down from $40. The firm is ” disappointed” in another surprise phosphate production cut and expects shares of Mosaic to be down significantly on the news, the analyst tells investors in a research note. RBC further notes that it is concerned that phosphate operational issues may persist, warning that at least several quarters of strong operations may be needed to win back investor confidence. The firm adds however that a potential upside case with Mosaic returning to nameplate phosphate production would allow the company to benefit from still elevated phosphate prices, even though this will require much better execution.