UBS Maintains a 'Buy' on Potash Corp. (POT); Reducing Fertilizer Price Forecasts

UBS maintains a 'Buy' on Potash Corp. (NYSE: POT) price target lowered from $75 to $65.

UBS analyst says, "Near term “credit-crunch” caution has stalled price momentum: Fertiliser bulk buyers have become increasingly more cautious of pre-buying and holding large inventories over fears of a “credit crunch”. Potash prices stalled in recent weeks and Potash Corp temporarily closed two mines last week on demand weakness. UBS expects “last minute” purchasing to be the norm but only in Q1/12."

"UBS has decreased its 2011/2012/2013 price forecasts for potash from $465/500/520 per mt to $458/460/450 per mt. UBS’ long term potash price forecast has also been reduced from $550/mt to $500/mt...We revised our 2011/2012/2013 EPS estimates from $3.68/4.40/4.67 to $3.65/3.95/3.78 to reflect the lower price forecasts."

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 $40.34 yesterday.

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