2024-07-17 12:25:30 ET
Summary
- MOS exhibits business expansion with new capacity projects, stock repurchases, and recent growth in the market, presenting an opportunity for long-term investors.
- My price target estimates range from $65.2 to $69 per share based on discounted cash flow analysis and precedent transactions, indicating potential upside.
- Analysts expect EPS growth in 2027 and 2028, with net sales growth projected to rebound from 2026 to 2028, suggesting positive long-term prospects for MOS.
- The company does not stop buying its own shares because the directors, in my view, think that the shares are quite cheap.
- Considering the current stock price, in my opinion, there appears to exist higher upside potential than downside risks.
Investment Thesis
The Mosaic Company ( MOS ) recently announced new projects, including the Esterhazy Hydrofloat project and an 800,000 tonne MicroEssentials capacity conversion. Given the previous headcount growth seen in the last 9 years, new incoming capacity, recent growth in net property, plant & equipment , and ongoing stock repurchases, MOS does exhibit business expansion. Recently, the market seemed to overreact to changes in the price of certain products like concentrated phosphate and potash crop or ammonia. In my view, it represents an opportunity for long-term investors....
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Mosaic: Presents Higher Upside Potential Than Downside Risks