MOS - Mosaic cut to Neutral at BofA ahead of earnings after today's close

Mosaic (MOS -0.6%) ticks lower ahead of its quarterly earnings report after today's close, as Citi downgrades shares to Neutral from Buy with a $46 price target citing valuation following the stock's 80% YTD rise. Citi's P.J. Juvekar expects Mosaic will report strong Q3 results and "robust" full-year earnings next year, but he thinks the current stock price reflects such optimism as cyclical stocks typically anticipate peak earnings by as much as 6-12 months or longer. Juvekar also expects phosphate and potash prices are hitting a peak and will cool off, as farmers cut back on P&K application next spring and decide to "mine the soil," as the two nutrients stay in the ground from previous years, allowing growers to "skimp" in a given year.

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Mosaic cut to Neutral at BofA ahead of earnings after today's close