NEW YORK (TheStreet) -- Shares of Mosaic (MOS) - Get Mosaic Company (MOS) Report were slumping in late-morning trading on Wednesday as Vertical Research cut its rating on the stock to "sell" from "hold," the Fly reports.
The firm now sees 24% total downside to its $22 price target, including the 3.6% dividend.
Vertical Research also expects a potential Agrium (AGU) and Potash (POT) merger to pressure Mosaic's domestic potash shipments, the Fly noted.
Yesterday, Mosaic stock spiked after Agrium confirmed it was in preliminary discussions about combining with Potash.
Mosaic is a Plymouth, MN-based producer and marketer of concentrated phosphate and potash crop nutrients.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on Mosaic stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MOS