CIBC has launched coverage on CF Industries Holdings Inc. (CF) with a neutral rating, reflecting cautious optimism amid evolving fertilizer market dynamics and elevated input costs. The move underscores strategic reassessment of the company’s near-term prospects.
- CIBC initiated coverage on CF Industries (CF) with a neutral rating as of December 8, 2025.
- CF’s Q3 2025 adjusted EBITDA reached $690 million, a 12% decline from the same period in 2024.
- Natural gas input costs remain elevated, pressuring fertilizer margin expansion in North America.
- CF’s current production capacity stands at approximately 8.7 million tons of nitrogen products annually.
- The company has announced a $250 million capital investment in 2026 for efficiency upgrades at its Donaldsonville, Louisiana facility.
- CF’s dividend payout ratio is currently 68% of free cash flow, suggesting moderate sustainability under pressure.
CIBC analysts have initiated coverage on CF Industries Holdings Inc. (CF), assigning a neutral rating to the stock. The firm’s analysis focuses on the company’s position within the global nitrogen fertilizer sector, where production costs and demand patterns are undergoing significant changes. CF, a major North American producer of ammonia and urea, reported third-quarter 2025 adjusted EBITDA of $690 million, down 12% year-over-year, as higher natural gas expenses weighed on margins.