Jefferies cuts Nutrien to 'hold' on weaker fertilizer outlook

Jefferies downgrades U.S.-listed shares of Canadian agrichemicals company Nutrien NTR.N to "hold" from "buy".

The brokerage lowered its price target to $63 from $96, representing a 7.8% downside to the stock's last close.

Jefferies said the 2027-2029 outlook is likely more negative than positive due to weak farmer margins and supply pressure in potash.

It added that ammonia profitability depends heavily on whether wars or geopolitical disruptions affect supply, but the cost advantage from cheap feedstock may shrink over time.

The brokerage expects nitrogen prices to drift down by the end of next year, with the U.S.-Iran war likely winding down.

As of the last close, the stock was up 10.7% year to date.