CIBC Capital Markets raised its price target on Nutrien Ltd. (NTR.TO, NTR) to US$66 from US$64.

Analyst Hamir Patel maintained an Outperformer rating on shares of the Canadian fertilizer company.

Patel said the higher target reflects increased pricing assumptions.

"With significant under-utilized potash capacity, Nutrien is well positioned to benefit from favourable long-term demand for potash," the analyst said in a note to clients.

"NTR should drive free cash flow growth through further expansion of profitability in its Retail business (one-third of mid-cycle earnings)," Patel said. "At the same time, we expect increased share repurchase activity as capex moderates."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)