ICL - Nutrien: The Stock Is Still Undervalued

• Growers have the incentive to increase production as prices of corn, soybean, and wheat are 50 to 90 percent higher than the 10-year average. It means higher demand for fertilizers.
• Potassium chloride (muriate of potash) monthly price increased from $202 per tonne in April 2021 to $562 per tonne in April 2022, up 178%.
• Due to the sanctions against Belarus’ potash, and Russian & Chinese fertilizer export ban, I estimate an average realized price of $650 per tonne for NTR's potash in 2022.
• Using the CCA method, I estimate that the stock is undervalued and has more than 20% upside potential to reach $119.
• However, I suggest ICL over NTR and other fertilizer stocks.

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