UPDATE: Barclays Capital Reiterates on Agrium on Updated Estimates

In a report published Wednesday, Barclays Capital analyst Matthew J. Korn reiterated an Overweight rating on Agrium (NYSE: AGU), and raised the price target from $106.00 to $113.00.

In the report, Barclays Capital noted, “4Q earnings for Agrium were largely a non-event, with management having pre-announced expectations in January. Numerous one-time gains/charges together with a discontinued ops classification led to a noisy report, but all-in adjusted EPS of $0.87 matched consensus. Post earnings, the stock has risen along with corn prices as geopolitical (Ukraine) and weather (Brazil) events have increased perceived production and distribution risk in the grain markets.

"Moderation of N.A. natural gas combined with higher nitrogen prices reflecting good seasonal demand have also helped sentiment on Agrium and the other fertilizer producers. With the company now moving ahead with its $720M Borger plant expansion, we're updating our earnings model to reflect the growth potential from this project (completion expected 2H15) as well as the near-complete Vanscoy potash mine expansion. Our 2014 estimate drops on more conservative potash volume assumptions, weather challenges in 1Q that may limit some shipments, and slightly higher natural gas costs for 2H.”

Agrium closed on Tuesday at $93.83.