- Mosaic (MOS +3.8%) recovers part of yesterday's steep loss after J.P. Morgan upgrades shares to Overweight from Neutral, with analyst Jeffrey Zekauskas saying MOS now represents a positive trading opportunity, especially since the company has simplified its approach to value creation and is taking steps to create long-term shareholder value.
- The stock, trading at 10-year lows and below book value, has underperformed the market over a one-, three-, five- and 10-year period, Zekauskas says.
- The company is focusing on increasing cost efficiencies in its domestic and Brazilian markets, and is enacting a long-term solution to water-inflow issues at its Esterhazy potash mine, JPM says.
- MOS should be able to deliver better and more normal business performance in 2020, with a free cash flow yield approaching 12%, according to Zekauskas.