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Corteva (NYSE: CVA) and CF Industries (New York Stock Exchange: CF) on Wednesday were rated Overweight in new coverage by analysts at Wells Fargo Securities. They also started coverage of Nutrien (New York Stock Exchange:NTR) and mosaic (New York Stock Exchange:MOS) with equivalent weight ratings.
Beside At the start of coverage of fertilizer and agricultural chemical companies, analysts transferred coverage from FMC (New York Stock Exchange: FMC) from another team and maintained the Overweight classification.
“The agriculture sector is an attractive industry of long-term secular growth driven by positive demographic tailwinds, including a growing population, rising income levels, declining poverty levels, and declining arable land, which requires improvements. continuous in yields and innovation to be able to feed the world. Wells Fargo analyst Richard Garchitorena said in a January 18 report.
Stocks of companies that make agricultural chemicals tend to do better than those of other types of chemicals during periods of economic weakness because people still need to eat.
“With the risks of a US and global economic downturn mounting in 2023, our deep analysis of previous recessions shows that the agricultural sector is an attractive group on a relative basis within the chemical sector,” according to Wells Fargo, which also said the crops are also favorable for the agricultural industry.
