BofA Keeps Sabic Agri-Nutrients at Buy on Urea Exposure; Price Objective Down

MT Newswires · 2d ago
03:37 AM EDT, 09/16/2026 (MT Newswires) -- BofA Global Research maintained its buy rating on Sabic Agri-Nutrients Co. (SASE:2020), citing a positive midterm outlook for urea prices and a preference for companies with "favorable supply/demand balances" amid elevated geopolitical risk. "We believe prices will be supported medium-term due to 1) elevated gas prices supporting the urea cash cost curve, 2) strong Indian import demand, and 3) improving global urea supply-demand (ex-China), pointing to rising operating rates," according to a Tuesday note focused on chemical companies in the Middle East and North Africa. Analysts added that urea affordability is at its "most attractive levels" year to date, noting that the commodity is well-positioned for strong performance from the fourth quarter of 2026 through the first half of 2027. On the earnings side, the research firm reduced its full-year 2026 and 2027 EBITDA projections to reflect expected volume reductions and rising logistics costs, alongside $3.47 billion in capital expenditure for a new ammonia and urea facility coming online in the fourth quarter of 2030. BofA cut its price objective to 158 Saudi riyals from 170 riyals.