Wells Fargo downgrades Nutrien on risk from lower crop prices

Wells Fargo analyst Richard Garchitorena downgraded Nutrien to Equal Weight from Overweight with a price target of $50, down from $62. Ahead of the Q3 results for the chemicals group, the firm see risks of lower crop prices setting the stage for “muted” earnings growth in 2025, with “significant bifurcation within the sector.” The downgrade of Nutrien reflects increased risks across its segments from lower crop prices, the analyst tells investors in a research note. Wells says tighter farm budgets increase the potential for reduced fertilizer demand as farmers look to reduce costs, most impacting potash. It also sees risks of lower spend impacting Nutrien’s retail segment. Given a lack of catalysts until Brazil demand returns in November and December, the shares will be range-bound, contends the firm.