Rentech Nitrogen Par (NYSE: RNF) was upgraded by equities researchers at Feltl & Co. from a “buy” rating to a “strong-buy” rating in a report issued on Monday. The firm currently has a $31.09 target price on the stock, down from their previous target price of $36.60.
The analysts wrote, “on the basis of improved visibility for strong profitability and an attractive valuation relative to peers. When we first initiated coverage on RNF back in March we estimated distributions earned in the calendar 2012 (paid out through early 2013) would total $2.40. RNF is now guiding to $2.86, and as can be seen below we believe EPS at RNF will actually exceed $3.00 in 2012. Also, valuations of the two most closely associated peers – Terra Nitrogen (TNH – not rated) and CVR Partners (UAN – not rated) are markedly higher, with TNH trading at a yield of 7.8% and UAN at 9.2%. We assume that RNF should trade at least at a yield comparable to UAN given its leverage from natural gas and its margin-enhancing location in the central Corn Belt (East Dubuque, Illinois). Hence, our price target of $31.09 reflects a yield of 9.2% on RNF’s self-projected distribution of $2.86.”
Shares of Rentech Nitrogen Par traded up 2.94% during mid-day trading on Monday, hitting $23.4186. Rentech Nitrogen Par has a one year low of $16.04 and a one year high of $29.91. The company has a market cap of $895.8 million and a P/E ratio of 18.00.
Separately, analysts at Dahlman Rose downgraded shares of Rentech Nitrogen Par from a “buy” rating to a “hold” rating in a research note to investors on Wednesday, May 9th.
Rentech Nitrogen Partners, L.P. is a provider of clean energy solutions and nitrogen fertilizer, to own, operate and grow its nitrogen fertilizer business.
