Citi Initiates Coverage on Potash Corp of Saskatchewan (POT) with a Hold
POT Hot Sheet
Rating Summary:16 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Citi initiates coverage on Potash Corp of Saskatchewan Inc (NYSE: POT) with a Hold. Price target $81.
Citi analyst says, "POT (2H) is the fertilizer industry leader, with a 16% share of global potash production and access to high quality, low cost deposits. While we view potash as the most structurally attractive nutrient, we remain neutral on POT shares entering the 2009 season. Given the credit crisis and lower grain prices, many farmers may skip or skimp on potash and phosphate applications in the 2009 season. We expect P&K demand to be down ~10% globally, while N may fall in the ~4% range. We think the fertilizer shares may present an attractive opportunity later in the year (2H ’09) when farmers begin to focus on the 2010 season and place orders. US farmers who skimp on fertilizers this year are likely to come back strong in the 2010 Ag season, in order to avoid a “yield hit” due to undernourishment of their crop."
Potash Corporation of Saskatchewan Inc. is an integrated fertilizer and related industrial and feed products company.
Citi analyst says, "POT (2H) is the fertilizer industry leader, with a 16% share of global potash production and access to high quality, low cost deposits. While we view potash as the most structurally attractive nutrient, we remain neutral on POT shares entering the 2009 season. Given the credit crisis and lower grain prices, many farmers may skip or skimp on potash and phosphate applications in the 2009 season. We expect P&K demand to be down ~10% globally, while N may fall in the ~4% range. We think the fertilizer shares may present an attractive opportunity later in the year (2H ’09) when farmers begin to focus on the 2010 season and place orders. US farmers who skimp on fertilizers this year are likely to come back strong in the 2010 Ag season, in order to avoid a “yield hit” due to undernourishment of their crop."
Potash Corporation of Saskatchewan Inc. is an integrated fertilizer and related industrial and feed products company.
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