April 19, 2009 / 6:48 PM / 10 years ago

Agrium shares are dirt cheap -Barron's

NEW YORK, April 19 (Reuters) - Fertilizer maker Agrium Inc’s AGU.TO beaten-down shares should climb as the global economy and corn prices bounce back, Barron’s reported on Sunday.

The investment magazine said demand for fertilizer, which tracks corn prices, is likely to rise. The Calgary-based company also is reducing its dependence on commodity markets by expanding its network of 870 retail farm centers in North and South America.

The stock trades at just 6.8 times estimated 2009 earnings, well below prices for rivals’ shares, and a discount to its own historic valuation of 14 times earnings.

Barron’s noted Agrium is in a battle to acquire rival CF Industries (CF.N), which could bolster prospects if it wins. (Reporting by Joseph A. Giannone; Editing by Jan Paschal)

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