UPDATE: Miller Tabak + Co. Reiterates on CF Industries on Mixed Factors

In a report published Thursday, Miller Tabak + Co. analyst Tim Tiberio reiterated a Sector Hold rating on CF Industries (NYSE: CF), and raised the price target from $230.00 to $245.00.

In the report, Miller Tabak + Co. noted, “We believe the market is responding positively to a confluence of statements/actions listed by CF today, including 1) Debt leverage will increase ($1.5bn offering planned for Q1:14), which in theory should support additional cash return potential beyond the $1.7bn remaining on its current buyback plan (+$2bn); 2) a MLP-structure is being openly studied for, at least, some of its new plant assets. We see this as a positive, albeit more speculative in nature and less of a near-term catalyst; and 3) CF announced the repurchase of 665k shares ($144.2mm) at an average price of $216.67/sh so far in Q4. Since the common view is that CF is very opportunistic in its buyback habits (rarely repurchases when N-T valuation is thought to be over extended), a $217/sh avg. price point suggests management's confidence in L-T valuation.”

CF Industries closed on Wednesday at $237.07.