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  5. NTR: The Market Data for Nutrien shows a slight decline in earnings from 2023 to 2024 and yet analysts have a median price target of $103. [Nutrien Ltd.]
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Q: The Market Data for Nutrien shows a slight decline in earnings from 2023 to 2024 and yet analysts have a median price target of $103.95. If earnings are expected to flat line why would analysts expect price appreciation for the stock?
Also you have mentioned Nutrien is a favourite in materials. What would be your case for buying today.
Thanks
Mike
Asked by michael on December 07, 2023
5i Research Answer:

NTR’s EPS in 2024 is expected to be around $6.76, which shows growth of around 5% compared to FY 2023. The 12-month average price target is around $90, implying a potential return of 23%. There is a lot of factors that can influence the price target of analysts' models including the expectation of the company’s future earnings in three or five years, (not today’s earnings), the macro environment (interest rates affect discount rates), etc. We continue to like NTR as one of our favorite names for the material sector given the company’s aggressive share repurchase program and global market share. NTR’s momentum has not been great recently due to tough comparisons in the last two years and concern on China's economy. We think NTR is a well-managed company and could do better as the global economy improves with lower rate expectations.