-- Nutrien (NTR) could benefit from rising risk of market tightness into H2 and 2027 as the Strait of Hormuz remains closed, BofA Securities said in a note Thursday.
"There is a narrow window for global fertilizer trade to normalize before key
buying periods in India and Brazil begin, and a prolonged Strait of Hormuz (SOH) blockade increasingly risks missing that window," the report said.
The note said there is upside risk to fertilizer price forecast in H2 and 2027 grain markets should buyers get shorted on product.
"To be clear, we are not there yet, but the risk is growing, and Nutrien shares still trade at pre-conflict levels," the report said, adding that this creates an opportunity for investors looking for conflict exposure.
BofA upgraded Nutrien to buy from neutral with a price target of $82.
Price: $75.38, Change: $+1.25, Percent Change: +1.69%