Shares of Agrium Inc. rose Thursday as an analyst raised his price target on the Canadian fertilizer company and forecast strong demand for fertilizer.
Shares of Agrium rose 55 cents to $110.55 in afternoon trading.
RBC Capital Markets analyst Fai Lee, who rates the stock "Outperform," raised his price target to $140 from $115, implying upside of 27.3 percent to Wednesday's close of $110.
Lee said the increase largely reflects higher expectations for fertilizer prices and the earnings outlook for Agrium's retail business.
Lee said demand for fertilizer should remain strong and expects potash fertilizer market fundamentals to remain robust through 2014.
Last week, Agrium raised its second-quarter profit outlook above Wall Street expectations, citing strong retail and wholesale performance.
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