Dahlman Rose Maintains 'Sell' on Potash (POT), Cuts PT and Estimates; Staying Pretty Bearish on Sector

June 15, 2012 8:04 AM EDT Send to a Friend
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Price: $35.08 -0.17%

Rating Summary:
    12 Buy, 19 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 10 | New: 7
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Dahlman Rose maintains a 'Sell' on Potash Corp. (NYSE: POT) price target of $38.00 (from $41.00).

Analyst, Charles Neivert, said, "We are reducing our 2012 estimates for POT to $3.11/share. We are also introducing a 2013 earnings estimate of $3.50/share which is below the current consensus of $3.83/share. Our 2012 estimate is also below the company issued guidance of $3.20-3.60/share. Our below guidance estimate represents our belief that the large corn crop is expected in the US, the likelihood of sluggish potash export markets for the remainder of the year and above normal potash industry inventories will contribute to weaker potash prices than guided to by the company as well as the possibility of mine shutdowns or production curtailments later this year. In addition, we see sizable declines possible in nitrogen prices as the North American planting season winds down in 2Q12."

All in, Dahlman Rose is pretty bearish on the sector, with Sell ratings on CF Industries (NYSE: CF), CVR Partners, LP (NYSE: UAN), Intrepid Potash (NYSE: IPI). Dahlman has Hold ratings on Agrium (NYSE: AGU), Mosiac (NYSE: MOS), and
Rentech Nitrogen Partners, L.P. (NYSE: RNF)...and no Buy ratings on stocks covered in the sector.

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 $37.91 yesterday.




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