The Mosaic Co
MOS: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$37.00 | Kvbf | Gyygyqx |
Reducing Mosaic FVE to $40 on Lower Near-Term Outlook; Shares Slightly Overvalued
After updating our Mosaic model to incorporate the company's fourth-quarter earnings, we reduce our fair value estimate to $40 per share from $44. The reduction is driven by our outlook for lower phosphate prices and reduced Mosaic Fertilizantes segment profits in 2023 versus our previous forecast. Our no-moat rating is unchanged. At current prices, we view Mosaic shares as overvalued, with the stock trading more than 25% above our updated fair value estimate.