CIBC Capital Markets raised its price target on Nutrien Ltd. (NTR.TO, NTR) to US$66 from US$64.
Analyst Hamir Patel maintained an Outperformer rating on shares of the Canadian fertilizer company.
Patel said the higher target reflects increased pricing assumptions.
"With significant under-utilized potash capacity, Nutrien is well positioned to benefit from favourable long-term demand for potash," the analyst said in a note to clients.
"NTR should drive free cash flow growth through further expansion of profitability in its Retail business (one-third of mid-cycle earnings)," Patel said. "At the same time, we expect increased share repurchase activity as capex moderates."
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