Potash Corp of Saskatchewan "outperform," target price raised - update

06/19/08 - RBC Capital Markets

NEW YORK, June 19 (newratings.com) - Analysts at RBC Capital Markets maintain their "outperform" rating on Potash Corp of Saskatchewan (POT), while raising their estimates for the company. The target price has been raised from $300 to $340.

In a research note published this morning, the analysts mention that the robust crop pricing environment is expected to continue to result in strong demand for fertilizers. The fundamentals of the potash fertilizer market are likely to continue to be robust until end-2014, in view of limited new capacity additions and growing demand, the analysts say. The EPS estimates for 2008 and 2009 have been raised from $9.83 to $12.26 and from $15.02 to $21.33, respectively, reflecting higher fertilizer price assumptions.