UBS Cuts Price Targets on Potash (POT) and Agrium (AGU)

This morning, UBS lowered its price targets on Potash (NYSE: POT) and Agrium (NYSE: AGU), both huge players in the recent ag boom and ensuing slide. The firm cut its target on Potash from $150 to $130 and its target on Agrium from $72 to $56. The firm maintains Buy ratings on both stocks.

These stocks have been extremely volatile amid the current economic uncertainty; considered high-flying growth stocks during the summer, both Potash and Agrium were hammered over the last few months as their growth prospects waned and hedge funds began unraveling their commodity-related trades. Since the height of the commodities bubble in mid-June, ag stocks fell as much 68% (as measured by the ag ETF (AMEX: MOO)), but have recently rebounded.

Since hitting fresh 52-week lows last Friday, shares of Agrium and Potash have bounced about 30% and 25.6%, respectively.

With Potash trading around $81.52 today (down 3.7%) and Agrium around $36.95 (down 4.6%), UBS's new price targets represent further upside of about 59% in shares of Potash and about 51% in shares of Agrium.

Potash Corporation of Saskatchewan, Inc. engages in the production and sale of fertilizers, and related industrial and feed products in North America.

Agrium, Inc. produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South America.

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