Scotiabank lists reasons to short CF in second downgrade of shares

As previously reported. Scotiabank downgraded CF Industries (CF) to Underperform from Sector Perform with an unchanged price target of $88. JPMorgan this morning also downgraded the shares to Neutral. The stock in morning trading is down 5% to $90.11. The firm says its conviction is growing that nitrogen margins will come under pressure soon. It sees potential share downside of 20% in the near-term. China will open urea export floodgates soon, Iranian exports will return shortly, and the timely Indian market support will end shortly, the analyst tells investors in a research note. Scotiabank sees these as reasons to short shares of CF.