Potash Corp (POT) receives two more upgrades

 

 

Potash Corp of Saskatchewan received two more upgrades this past week from RBC Capital and UBS Securities.

RBC Capital Markets analyst Fai Lee upped his target on Potash Corp to $340 from a previous target of $300. In the report Fai outlines a number of reasons behind this, including a growing of the EPS. One of the more interesting tidbits from this report is the following pertaining to the strong industry demand cycle continuing:

The extremely strong crop price environment should translate into continued robust demand for
fertilizers. We expect potash fertilizer market fundamentals to remain strong
through 2014 given limited new capacity additions and growing demand. We
believe phosphate fertilizer market conditions will remain strong until Saudi
Arabia’s Ma’aden diammonium phosphate facility commences operations in 2011/12.

Potash Corp also received another analyst upgrade on this past week, this upgrade coming from UBS securities. UBS revised their old target of $250 and upped it to $285. The reasoning behind the upgrade was very similar to that of RBC. Analyst Brian MacArthur wrote the following:

Given its low-cost operations, which are backed by 100 years of reserves, its associated potash investments, and over 75% of the world’s excess capacity, we believe it is well positioned to meet increasing potash demand.

Potash popped on both of these upgrades. Currently on a down session, POT is trading at $224.51.

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