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TD Securities Upgrades Potash Corp. (POT) to Buy

January 31, 2014 1:08 PM EST Send to a Friend
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Price: $35.02 -0.4%

Rating Summary:
    9 Buy, 21 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 52
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TD Securities upgraded Potash Corp. (NYSE: POT) from Hold to Buy with a price target of $37.00 (from $33.00). Analyst Greg Barnes thinks Potash markets have bottomed.

"We believe that although 2014 potash sales guidance was disappointing versus most expectations (including ours), the recent upward swing in global spot potash prices, the fact that Chinese buyers have concluded H1/14 delivery contracts, and that the global potash market is expected to report reasonable y/y growth this year (+3.7%) suggest that the market is stabilizing and that as buyers adjust to the new market reality, demand should accelerate," said Barnes.

"Our analysis of y/y changes in potash demand ex-North America suggests that demand does respond to price, albeit with a lagged response. Given the encouraging signs so far in 2014, we expect demand to accelerate, now that a price floor has been established. We are assuming that PotashCorp's 2014 potash sales are at the upper end of its guidance range of 8.2–8.6 Mt; we have trimmed our 2015 sales projection to 9.5 Mt (from 10 Mt) given the lower base expected in 2014," he added.

For an analyst ratings summary and ratings history on Potash Corp. click here. For more ratings news on Potash Corp. click here.

Shares of Potash Corp. closed at $31.24 yesterday.




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Comments

Potach Corpuration
Hansen Harlley on 2014-03-25 20:07:07
Mark as Spam | Reply to this comment

Potash Corporation is the world’s largest producer of potash, nitrogen and phosphate fertilizers, and controls nearly 20% of the global supply of potash http://goo.gl/9H8Jyv


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