Morgan Stanley Raises Mosaic (MOS) Target as Potash Outlook Improves for 2026

The Mosaic Company (NYSE:MOS) is included among the 15 Dividend Growth Stocks with the Highest Growth Rates.

On January 14, Morgan Stanley lifted its terms people connected The Mosaic Company (NYSE:MOS) to $35 from $33 and kept an Equal Weight rating. The steadfast said it is feeling much affirmative connected potash aft moving a caller supply-and-demand check. Morgan Stanley present expects potash prices to ascent moderately successful 2026 versus 2025, helped by a choky planetary marketplace wherever effectual capableness utilization stays supra 90% until astatine slightest 2028.

However, Mosaic’s ain update a mates of days aboriginal painted a tougher near-term picture. On January 16, the institution warned that fertilizer request successful North America dropped sharply successful the 4th quarter, and that weakness deed some income and currency flow. The banal slid astir 4% successful greeting trading aft the announcement.

Mosaic said request softened due to the fact that galore farmers chopped backmost connected fertilizer usage arsenic budgets tightened. On apical of that, wintertime arrived early, shortening the model for merchandise exertion and limiting seasonal volumes. The phosphate broadside was peculiarly pressured. Mosaic noted that phosphate products were little affordable than potash during the quarter, which made the marketplace particularly difficult. North American phosphate shipments fell astir 20% from a twelvemonth ago, portion potash request held up amended and was lone somewhat weaker.

That displacement is showing up successful the company’s measurement expectations. The Mosaic Company (NYSE:MOS) said Q4 phosphate income were astir 1.3 cardinal tonnes, beneath its earlier forecast of 1.7 cardinal to 1.9 cardinal tonnes. Potash income of astir 2.2 cardinal tonnes were besides beneath its anterior scope of 2.3 cardinal to 2.6 cardinal tonnes.

Brazil was besides challenging. Mosaic said tighter recognition conditions and heavier contention squeezed request and margins, including unit from imports of lower-analysis phosphate coming retired of China. Because of that, volumes astatine its Mosaic Fertilizantes portion came successful good beneath interior plans for the quarter.

For the afloat twelvemonth 2025, Mosaic reported income volumes of astir 9 cardinal tonnes, fundamentally level twelvemonth implicit year, though the institution said this inactive reflected a broader downturn successful the market. Mosaic is scheduled to merchandise afloat Q4 results connected February 24.

The Mosaic Company (NYSE:MOS) is simply a large shaper and marketer of harvest nutrients, with its concern centered connected concentrated phosphate and potash products.

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