BofA Maintains Fertiglobe's Buy Rating on 'Positive' Midterm Urea Price Outlook; Price Objective Cut

06:46 AM EDT, 09/16/2026 (MT Newswires) -- BofA Global Research reiterated Fertiglobe's (ADX:FERTIGLB) buy rating, citing a "positive" medium-term outlook for urea prices and "prudent" capital allocation in low-carbon ammonia capable of funding sustainable dividend payouts and share repurchases. "Uncertainty over the pace of recovery of traffic through the [Strait of Hormuz] does not alter our stock positioning or preference for [fertilizers], as this is driven by [medium-term] fundamentals. We highlight that urea affordability is at the most attractive levels [year to date], with a significant drop from the peak of [US$900 per tonne] to US$410/t currently," analysts said Tuesday in a note focused on chemical companies in the Middle East and North Africa. The research firm expects midterm urea prices to be supported by elevated gas prices holding up the urea cash cost curve, robust Indian import demand, and strengthening international supply-demand dynamics outside China. On the earnings front, analysts lowered their full-year 2026 EBITDA assumption to reflect ongoing shipping disruptions in the Strait of Hormuz alongside expected elevated turnaround costs in the second half. Conversely, the research firm's EBITDA projection for 2027 was lifted due to higher long-term European Union gas prices, which raised BofA's ammonia price forecast. Within this context, BofA trimmed its price objective on the stock to 3.7 Emirati dirhams from 4.1 dirhams.