JPMorgan downgraded Mosaic (NYSE:MOS) to Neutral from Overweight and lowered its price target to $46.00 from $60.00 on increased macro-risks to the valuation of the company, noting it is looking for a deeper discount to the company’s normalized valuation as a re-entry point.

Meanwhile, Stifel lowered the price target on the company to $46.00 from $54.00 while maintaining a Hold rating. According to Stifel analysts, broader demand for P&K has been affected by a late US Spring and Brazil de-stocking, and affordability levels in less productive agronomies are a concern, particularly with the possibility of higher interest rates straining access to working capital financing.

The analysts believe that the faster-than-expected correction in fertilizer prices will generate incremental headwinds for shares, leading investors to become more hesitant to call a new floor in fertilizer markets, despite prices holding within their longer-term expectations for 'new normal' pricing.