Potash Corp (POT) Could Gain as Potash Prices Near Bottom - Barron's

Potash Corp. (NYSE: POT) shares are trading higher following a positive mention last weekend.

Barron's sees the fertilizer making big gains over the next year to 18 months, amid a 26 percent drop in the stock's price year-to-date 2015.

One JPMorgan analyst sees Potash Corp. trading at $34 by the end of next year using a 10 times expected EBITDA model, versus the 7.9 times where Potash Corp. shares currently trade.

EPS is expected to rise from $1.81 this year to $2.02 in 2016 and some believe earnings could grow in the high-single-digit arena over the next several years.

Potash prices peaked at $800 per metric ton in 2008, with Russia and Canada-based cartels largely controlling the market. The breakup of cartels in 2013 send prices to around $300 per metric ton.

Potash Corp. may have several outlets for growth, including expansion of its Canadian mines and/or strategic acquisitions, like the company's recent effort to acquire K + S.

Shares of Potash Corp. are up over 2.2 percent.

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