Nutrien's (NTR) continued improvement in operations is expected to propel consistent growth in its retail business and free cash flow per share, RBC Capital Markets said in a note emailed Monday.

The company is prioritizing long-term stability that can withstand market fluctuations and aiming at consistent growth in free cash flow, RBC analysts said. Last year's cash conversion was affected by around $500 million in working capital tied up due to an early winter, an intentional increase in inventory for proprietary products, and reduced farmer prepayments, the analysts said.

The analysts noted that Nutrien is aiming for a mid-single-digit growth in its retail business for the long term, focused mainly on organic opportunities. The company's proprietary products, particularly in Crop Nutrition, offer a high upside, driven by demand from farmers to boost crop yields, the analysts said.

RBC reiterated the company's stock at outperform and raised the price target to $80 from $75.

Price: 71.14, Change: -0.06, Percent Change: -0.08