Goldman Sachs Raises CF 2011 EPS Estimate, Maintains $131 PT

Goldman Sachs is raising its 2011 EPS estimate on CF Industries Holdings, Inc. (NYSE: CF) from $16.23 to $17.50. Goldman Sachs is also maintaining its $131 PT on the stock.

“We expect an impressive year for CF as high corn and N prices are coupled with low natural gas costs,” Goldman Sachs writes. “Shares could follow through positively in 2Q as planting activity picks up and Chinese export restrictions keep excess product off the market.

“However, we expect underperformance vs peers over a longer horizon, with N prices likely to move off of peaks on the back of lower corn prices and increased N supply. We recommend investors tilt towards names with greater pricing power, with Potash Corp (POT) our top fertilizer pick.”

CF Industries Holdings closed Friday at $137.82.