RBC Cuts Potash (POT) Price Target to $120 Following K+S Demand Concerns

June 17, 2009 5:01 PM EDT

Earlier, analysts at RBC Capital lowered their price target on shares of Potash (NYSE: POT) from $150 to $120 following concerning comments this morning from Germany's K+S. Despite the target reduction, RBC maintained an Outperform rating on Potash.

With shares of closing down nearly 11% to $95.59 today, the firm's price target represents potential upside of about 25.5%.

Ag and potash stocks tumbled today on the news that K+S sees very weak potash demand during 2009. Consequently, K+S lowered its potash demand estimates from about 6 million to 4-4.5 million tonnes, also suggesting that it has seen "severe price weakness and unsustainability for large quantity pricing".

The Market Vectors Agribusiness ETF (NYSE: MOO), commonly referred to as "the MOO", fell 3.7% on the overseas news today. Elsewhere in the sector: Mosaic (NYSE: MOS) fell 9.7%, Agrium (NYSE: AGU) tumbled 7%, CF Industries (NYSE: CF) dipped 5.4% and Interpid Potash (NYSE: IPI) fell 9%.


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AGU 50.11

+0.30 +0.60%
Volume: 2,258,064
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CF 79.05

-0.85 -1.06%
Volume: 2,187,782
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IPI 27.15

-0.20 -0.73%
Volume: 1,268,297
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MOO 39.96

+0.08 +0.20%
Volume: 328,330
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MOS 50.35

+0.86 +1.74%
Volume: 4,011,445
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POT 96.25

+0.60 +0.63%
Volume: 3,407,545
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Comments

your opinion is crap
r lars on Jun 18, 2009 11:40 AM

i am reporting your manipulative manner of moving a stock..........you are idiots from germany not in usa or canada usa mind your own business.......


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