Seeking Alpha: Yara International Continues To Execute Well In A Turbulent Market

A year ago I wasn't sure what to make of Norwegian fertilizer giant Yara International (OTCPK:YARIY), as I was bullish on the company's overall business model and long-term prospects but thought that the shares adequately reflected a lot of the upside. The local shares (YAR.OL) have climbed about 20% over the last year, but the ADRs are down about 5% due the appreciation of the dollar (Eurozone investors would be looking at a roughly 13% gain).

Assuming that the currency rate settles down, the prospects for Yara's ADRs are neutral-to-positive in my view. While increasing Chinese coal-based exports are a concern, Yara's strategy of shifting more business toward higher-value products should offset this. At the same time, while the company saw some very unwelcome C-suite turbulence last year the company has continued to identify attractive capital investment prospects that should build more value in the years to come. I think $48.50 to $55 is a good range in which to think about Yara's value, but that doesn't lead to the most compelling investment argument today.

Continue reading here:
Yara International Continues To Execute Well In A Turbulent Market