Nutrien (NTR) is expected to benefit from solid agriculture demand, higher nitrogen prices, strong cash flow, possible asset sales, and continued share buybacks, RBC Capital Markets said.
The investment firm said in a Friday note that Nutrien is executing well and should generate strong free cash flow in 2026 and 2027, helped in the near-term by higher nitrogen prices. The company's retail business remains on track for growth in 2026 as planted acreage stays high and demand improves for products that help crop yields.
RBC expects nitrogen prices to stay high even after the Strait of Hormuz reopens, as fertilizer markets may take time to return to normal, according to the note.
Potash demand remains steady, though there is some risk later in 2026 if farmers shift spending because nitrogen and phosphate prices remain high.
RBC maintained its outperform rating and $85 price target.
Shares of Nutrien were up 4.3% in Monday trading.
Price: $71.26, Change: $+2.93, Percent Change: +4.29%