Mosaic: CEO Change Will Likely See Company Maintain Strategy

On Aug. 29, Mosaic announced current CEO Joc O'Rourke plans to step down at the end of 2023. Beginning in 2024, Mosaic's new CEO will be Bruce Bodine, who is currently senior vice president of North America. Despite the planned leadership change, we see no reason to change our outlook for Mosaic. Accordingly, we maintain our $40 per share fair value estimate for the company. Our no-moat rating and standard capital allocation rating are also unchanged. At current prices, we view Mosaic shares as fairly valued with the stock trading just below our fair value estimate and in 3-star territory. As such, we recommend investors wait for shares to offer a greater margin of safety below our fair value estimate before considering the stock.