AGU hypoteical EPS of $12 per share in 2009

 

 

RBC has some upbeat comments this morning on Agrium’s (AGU) earnings for 2009

Currently up over $100 at $102.64, AGU received some positive coverage this morning in the Royal Bank Market Research morning report.

According to RBC Agrium could exceed $12 EPS in 2009 due to the current & future market prices of phosphate, potash, and nitrogen. This estimate is contingent upon AGU’s earnings from other segments remaining at 2007 levels.

AGU is also reviewing expansion ideas, with the company hoping to expand the production at the Vanscoy mine by 350-400 thousand tons in 2011/2012, at a cost of $250 million.

Even factoring in a conservative 15 x earnings this would leave Agrium with a share price of $180.

Current AGU Three Month Chart

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