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DPM [BUY +22.2%] - Rising urea price, new NPK plant to propel 2019 earnings - Update

Company Research

29 Oct 2018

We lift our target price by 6.8% and upgrade to a BUY rating thanks to upward revisions of 21.7% and 19.4% for earnings in 2018F and 2019F, respectively, given an improving outlook for urea prices. We forecast 2018 EPS to stay relatively flat as margin compression of the urea segment will be offset by a sharp reduction in selling and general expenses.
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