Azoty Drops as Zachodni Says Sell Chemical Group: Warsaw MoverPiotr Bujnicki
Grupa Azoty SA, Poland’s biggest fertilizer producer, dropped from a three-month high after Bank Zachodni WBK SA recommended selling the stock.
The shares fell as much as 2.1 percent and closed 1.6 percent lower at 77.6 zloty in Warsaw. Azoty has advanced 44 percent this year as first-half profit almost tripled and the state-controlled producer took over local competitors Zaklady Chemiczne Police SA and Zaklady Azotowe Pulawy SA. Its Police unit agreed last month to buy a stake in a Senegal-based company to start phosphoric-acid production.
The valuations of Polish fertilizer companies “should be regarded as an opportunity to sell,” Tomasz Kasowicz, a Warsaw-based analyst at Zachodni, said in a note yesterday. “Polish fertilizer companies may not fully benefit from the improving macro trend because of structural changes resulting from capacity additions in Asia.”
Zachodni started coverage of Azoty, setting a share-price estimate at 59 zloty. Chemiczne Police was also rated as sell while Zachodni recommended buying Pulawy shares, citing its “superior fertilizer portfolio.”