 Nutrien reports $576mn of net earnings, down 58% YoY, and adjusted EBITDA of $1.4bn, down 42% YoY in 1Q23 as product prices corrected from their highs. The company’s Retail sales were down 11% YoY to $3,422mn in 1Q23, driven by a drop in crop nutrients sales by 16% YoY to $1,335mn and a 17% decline in crop protection products sales to $1,154mn. Retail gross margin fell by 52% YoY for crop nutrients and by 26% YoY for crop protection products resulting in a 27% decline in retail margin. Crop nutrients selling price fell 10% YoY in 1Q23. The potash segment sales fell by 46% YoY to $1,002mn on the back of a 30% decline in North America’s sales volumes to 854kt and total potash sales drop to 2,636kt, down 13% YoY. The company reported a 38% YoY decline in potash average selling price to $380/t in 1Q23 compared to 608/t in 1Q22 and $526/t in 4Q22. At the same time, potash cash cost was up 24% YoY to $62/t. The nitrogen segment net sales were down 25% YoY to $1,312mn. Nitrogen gross margin by product decreased by 21% for urea and by 23% for ammonia. The overall gas cost was 4.85$/MMBtu, down 29% YoY. In the phosphate segment, the company booked $514mn revenue, down 19% YoY on the back of 548kt sales volumes, down 16% YoY. The average phosphate price was $814/t, down 6% YoY supported by a 27% increase in industrial and feed phosphates prices. Nutrien reported $6,107mn revenue in 1Q23, down 20% YoY. The gross margin of the company was down 41% YoY on the back of weaker YoY prices. The net debt of the company reached $12.1bn as of the end of March 2023, compared with $9.2bn three months ago.  Nutrien revised down its FY2023 guidance from $8.4-10.0bn to $6.5-8.0bn for adjusted EBITDA and from $8.45-10.65/share to $5.5-7.5/share for adjusted net earnings. Despite supportive global soft commodity prices, low grain stock-to-use ratio (lowest since 1996/97 at 13.9%), and good farmers’ margin, as well as demand prospects, fertilizer price levels corrected down closer to mid-cycle averages. The company expects retail adj EBITDA at $1.6/1.75bn (down from $1.85-2.05bn), potash adj EBITDA at $2.65-3.35bn (down from $3.7-4.5bn), nitrogen adj EBITDA at $1.95-2.55bn (down from $2.5-3.2bn) and phosphate adj EBITDA at $550-700mn (down from $550-750mn). Nutrien plans to sell 13.5-14.3mt potash and 10.8-11.4mt of nitrogen fertilisers.  We decrease our 2023 forecasts. The correction of fertilizer prices despite robust market fundamentals shall indicate the end of the high cycle and normalization of margins. The cost inflation effect on costs and prices is still unclear as gas prices just corrected down while other inputs may be influenced by cost inflation over time. We believe the stock may still see lower levels, however, the usual strong 2Q sales may have a positive influence on margins. We adjusted our forecasts and the 12-month price target to $69.2 from $95.4/share. We rate the stock Hold. The stock is valued at a 6.5x EV/EBITDA’24 based on consensus, 16% above the sector average.