CF Industries to boost ammonia capacity with Waggaman deal, says BMO Capital

BMO Capital analyst Joel Jackson made no change to the firm’s Outperform rating or $115 price target on CF Industries after the company announced the acquisition of the seven-year old Waggaman 880kst ammonia plant for $1.675B of consideration, including $1.25B cash. The firm likes the purchase, even though it reduces CF’s near-term share buyback potential, and says the plant should have ample synergy potential, the analyst tells investors in a research note. The purchase will boost CF’s ammonia capability by roughly 7%-8%, BMO Capital notes.