UBS Maintains a 'Buy' on Potash Corp. (POT); Revising Numbers to Reflect Updated Guidance
POT Hot Sheet
Rating Summary:16 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 7 | New: 26
UBS maintains a 'Buy' on Potash Corp. (NYSE: POT) price target lowered from $65 to $60.
UBS analyst says, "Q4 gross margin of $890M was marginally lower than we expected due to weakness in the potash segment. North American potash volumes were down substantially while offshore pricing decreased as more sales were made to lower-netback regions. However, contributions from its potash investments (worth $10/share) increased. Separate from the earnings release, POT also announced the doubling of its quarterly dividend to $0.14/share."
"We have revised our EPS estimates to reflect the updated shipments, gross margin and cost guidance. Our $60 price target is based upon our SOTP analysis utilizing N, P, and K multiples of 7.0x, 7.0x, and 11x to our 2012 segment EBITDA, and adding the value of investments ($10/shr)." (FY12 EPS estimate from $3.95 to $3.72 and FY13 from $3.79 to $3.57)
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 $45.81 yesterday, with a 52 week range of $38.42-$191.90.
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UBS analyst says, "Q4 gross margin of $890M was marginally lower than we expected due to weakness in the potash segment. North American potash volumes were down substantially while offshore pricing decreased as more sales were made to lower-netback regions. However, contributions from its potash investments (worth $10/share) increased. Separate from the earnings release, POT also announced the doubling of its quarterly dividend to $0.14/share."
"We have revised our EPS estimates to reflect the updated shipments, gross margin and cost guidance. Our $60 price target is based upon our SOTP analysis utilizing N, P, and K multiples of 7.0x, 7.0x, and 11x to our 2012 segment EBITDA, and adding the value of investments ($10/shr)." (FY12 EPS estimate from $3.95 to $3.72 and FY13 from $3.79 to $3.57)
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 $45.81 yesterday, with a 52 week range of $38.42-$191.90.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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