Citigroup raises Yara target on nitrogen upturn

11 April 2008 14:34  [Source: ICIS news]

LONDON (ICIS news)--Citigroup has significantly increased its share price target for Norway’s Yara after positive developments in the nitrogen fertilizer market, the bank said on Friday.

 

The Chinese government’s move to increase urea export duties to 135% would remove around 14% of export volumes from the market, said analyst Daniel Mon, leaving extra demand for Yara’s product.

 

The bank said it had long been concerned about oversupply in the nitrogen fertilizer market, but new China export duties, high Russian gas prices and robust global demand growth would combine to effectively absorb the new product.

 

Citigroup moved its share price target for Yara to Norwegian kroner (NKr) 380.00 ($76) from NKr196.00 and maintained a 'Hold' recommendation.

 

Yara shares were trading 2.4% up on Thursday’s close at NKr345.00 on the Oslo stock exchange.

 

($1 = NKr5.03)

By: Mark Watts
+44 20 8652 3214

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