Dahlman Rose Downgrades Potash Corp. (POT) to Sell; Weakening Fundamentals, Waning Oligopoly Discipline

Dahlman Rose downgraded Potash Corp. (NYSE: POT) from Hold to Sell with a price target of $41.00.

Dahlman analyst says, "We see the best times for fertilizer moving into the rear-view mirror as high crop prices bring on the expected response from farmers – i.e., strong planting. Assuming a trendline yield of 160 bushels/acre, we expect US corn ending stock levels to increase to around 1.3 billion bushels by the end of marketing year 2012/2013. This is likely to pressure grain pricing and, as a result, fertilizer prices and shares. We see corn prices declining during 2012, and should the 14 billion bushel crop begin to take shape, corn prices could easily approach $4.50/bushel."

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 $44.43 yesterday.

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