BofA/Merrill analyst Steve Byrne double downgraded CF Industries to Underperform from Buy and cut its price target to $40 from $48. Byrne sees risk to nitrogen pricing in second half 2018 due to increasing Chinese production rates, ending seasonal demand in the northern hemisphere, a positive net export position in the US in the summer-fill season, and lower international energy prices following seasonality. The analyst believes CF can achieve approximately $5 per share in free cash flow, but in 2020+ versus 2019+ previously. Further, Byrne is more cautious on nitrogen fertilizer demand outlook as China increases fertilizer formulations which could result in multi-year demand declines.