8 Ag Chem Stocks With Upside Up to 128%: Analysts

2. Rentech (RTK), a provider of clean energy solutions, owns and operates a nitrogen fertilizer plant and manufactures and sells natural gas-based nitrogen fertilizer products within the corn-belt region in the U.S. The company develops energy projects in order to produce certified synthetic fuels and electric power from carbon-containing materials.

For first-quarter 2011, the company reported revenue of $42.1 million as compared to $27.1 million in the year-ago quarter. Net loss narrowed to $5.5 million from $15.5 million during the same period. Meanwhile, it swung to an operating income of $15.0 million for the first quarter of fiscal year 2011, compared to an operating loss of $2.0 million last year.

Looking ahead, the company estimates almost $60 million of EBITDA with an operating income of at least $50.4 million for 2011. Rentech's wholly owned subsidiary, Rentech Energy Midwest Corporation (REMC), has signed fixed-price contracts for the sale of more than 70% of REMC's forecasted deliveries for 2011, and for the natural gas that is required to produce the product. Strong demand and pricing for fertilizer products is expected to continue throughout the year and thus support profit levels.

Of the six analysts covering the stock, 33% recommend a buy on it while 50% suggest a hold. Analysts polled by Bloomberg expect the stock to gain an average 74%, to $2.2, in the upcoming 12 months.

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