Mosaic initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst Richard Garchitorena initiated coverage of Mosaic with an Equal Weight rating and $47 price target. Garchitorena expects further price normalization in fertilizers before finding stability, the analyst tells investors in a research note. The analyst is encouraged by Mosaic’s plans to expand its low-cost potash production run rates by 1.5MM tonnes by the end of 2023, but its decision to temporarily curtail Colonsay production reflects a softer near-term demand outlook and delays the timing of the ramp-up indefinitely, he contends.