Goldman Sachs Starts Potash Corp. (POT) at Buy, Says Potash Fundamentals Near Bottom
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Price: $42.88 --0%
Rating Summary:
19 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 2 | Down: 5 | New: 6
Rating Summary:
19 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 2 | Down: 5 | New: 6
Trade POT Now!
Goldman Sachs initiates coverage on Potash Corp. (NYSE: POT) with a Buy rating and $46 price target, suggesting 15% upside. The firm cited leverage to a turn in potash fundamentals which they said are near a bottom.
The firm comments, "Following the recent announcement of production curtailments amounting to about 15% of annual capacity and broad-based inventory destocking, we believe potash fundamentals are approaching trough. Coupled with significant 2012 underperformance (POT -3% YTD vs. the S&P +13% and corn +14%) we believe risk/reward is increasingly attractive on a multi-year basis, with valuation now at 8.4x 2013 EV/EBITDA, a nearly 18% discount to the five-year average. Further, we believe the market is no longer giving POT credit for significant brownfield capacity expansions set to come online beginning in 2H2013 that should drive 20-25% K volume growth in 2014-15."
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 $40.90 yesterday, with a 52 week range of $36.73-$48.00.
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The firm comments, "Following the recent announcement of production curtailments amounting to about 15% of annual capacity and broad-based inventory destocking, we believe potash fundamentals are approaching trough. Coupled with significant 2012 underperformance (POT -3% YTD vs. the S&P +13% and corn +14%) we believe risk/reward is increasingly attractive on a multi-year basis, with valuation now at 8.4x 2013 EV/EBITDA, a nearly 18% discount to the five-year average. Further, we believe the market is no longer giving POT credit for significant brownfield capacity expansions set to come online beginning in 2H2013 that should drive 20-25% K volume growth in 2014-15."
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 $40.90 yesterday, with a 52 week range of $36.73-$48.00.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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