Monday, January 31, 2011

Potash Corp. (NYSE:POT) to Benefit from Ongoing Fertilizer Purchases

Fertilizer demand in 2011 should continue on from 2010, and Potash Corp. (NYSE:POT) will benefit from the ongoing trend.

Canaccord says, "We believe the steady fertilizer purchasing that we witnessed in 2010 will continue through 2011 as farmers globally look at fertilizer purchases to power their crop growth. Furthermore, we believe we are witnessing the early stages of stock rebuilding at the distributor level, which should further add to the demand growth for fertilizers." (Canaccord FY11 EPS estimate is $9.21)

Canaccord Genuity maintains a 'Buy' rating on Potash Corp. (POT), which closed Friday at $174.16, up $0.02, or 0.01 percent. Canaccord raised their price target on Potash from $185 to $207.

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