Analyst says Nutrien turmoil is opportunity to buy

The second abrupt departure of a chief executive at Nutrien Ltd. in less than a year raised some alarm bells on Bay Street Tuesday, but at least one analyst is telling clients this is an opportunity to load up on shares in the crop nutrient giant.

The second abrupt departure of a chief executive at Nutrien Ltd. in less than a year raised some alarm bells on Bay Street Tuesday, but at least one analyst is telling clients this is an opportunity to load up on shares in the crop nutrient giant.

RBC's Andrew Wong said in a report published late Tuesday afternoon that the investment community "will likely never really know the full story" about the circumstances that led to Mayo Schmidt's sudden exit. However, at the end of the day, he said there's an attractive opportunity for investors who can stomach the management turnover.

"While the second sudden CEO change in a short period of time raises questions regarding management and board stability, we believe Nutrien has a solid foundation built upon a combination of well-run assets and strong financials," he wrote.

"We view the recent pull-back in shares as a good entry-point for investors that can look past some near-term uncertainty and noise from the recent management changes."

Nutrien announced Schmidt's departure Tuesday morning, and Chair Russ Girling said the board was launching a global search for the company’s next "long-term leader." Until that individual is identified, Nutrien appointed Ken Seitz, who was leading the company's potash operations, as its interim chief executive.

Schmidt lasted less than a year in the top job after he inherited the position last April when Chuck Magro stepped down. Prior to that, Schmidt was serving as Nutrien's chair and was a familiar name in Canada's corporate landscape after stints as chief executive of Hydro One Ltd. and Viterra Inc. Nutrien’s New York-listed shares ran up almost 36 per cent during Schmidt’s time as chief executive.