Analysts at Citi downgraded shares of CF Industries Holdings (CF) to Neutral from Buy citing valuation and limited near term catalysts. The price target on CF was retained at $267.00.

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“there are risks of a softer urea market in 2H14 on higher China exports and potential for lower grain prices if a record crop develops. Plus (see Figure 1), CF’s multiple has risen to ~14x, back toward pre- “shale supremacy” levels. We see balanced risk/reward here and recommend investors stay on the sidelines for now.” Citi said in a note to clients

“Global urea markets have weakened outside of the US since late February and now appear to have reversed the rebound which started late last summer. Part of this move could be seasonal. Supply uncertainty in China could increasingly pressure the market as seasonally exports should be much higher in 2H14 with lower tariffs.” it added

Shares of CF Industries Holdings (CF) were trading lower by 1 percent at $262.79 in early morning trade.