RBC Capital analysts upgraded CF Industries Holdings, Inc. (NYSE:CF) to Outperform from Sector Perform and raised their price target to $135 from $110, noting they expect the company to benefit from a favorable nitrogen market outlook and attractive US/International Market energy spreads, that are likely to persist long-term.

The analysts also believe the company has demonstrated a track record of strong operations and execution, and see potential upward Street estimate revisions and strong cash flow ($4.2 billion, 21% yield in 2023 and $2.8 billion, 14% yield in 2024) driving share price upside.

In the near term, the analysts see the potential for significant upward estimate revisions as the Street appears to be discounting very conservative nitrogen price forecasts.