TD Newcrest Downgrades Potash Corp. of Saskatchewan (POT) to Hold

May 21, 2009 9:18 AM EDT

TD Newcrest downgrades Potash Corp. of Saskatchewan (NYSE: POT) from Buy to Hold.

TD analyst says, "Potash Corp.'s analyst day provided incremental transparency into long-term strategy, and we like what we see. Bottom line, we are downgrading to HOLD due to strength in POT's stock price, but we recognize the potential for positive surprise in 2010 earnings is building in our view. Specifically, continuing global potash production/price discipline combined with improving farmer economics, ethanol/biofuel support, M&A premium potential within the sector, and disproportionate potash leverage going forward, all suggest to us that the story has room still. We will look for signals over the next few months from the China/India negotiations with Canpotex with respect to potash pricing, and inventory data with respect to H2/09 demand recovery for better visibility into 2010 earnings. As such, our positive bias remains for the next several months at least, but stock price appreciation warrants HOLD."

To see more analyst ratings on POT Click Here.

Potash Corporation of Saskatchewan Inc. is an integrated fertilizer and related industrial and feed products company.

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