The high-flying Potash (NYSE:POT) received a big price increase from an analyst at Boenning & Scattergood, who increased his price target on the fertilizer company from $190 to $240. That's a new Street high PT on the stock.
Reasoning behing the huge uptick was the "supply/demand relationship emerging. World-wide, declared POT this morning, demand this year will climb to 55 – 60 million tons from 52 million tons in 2010, YET CURRENT GLOBAL PRODUCTION CAPACITY IS ONLY 61 MILLION TONS. In simple terms, supply is growing tighter and tighter..."
Farmers have more capital to spend this year also, after a bumper harvest last year from high soybean and corn prices.
Boenning & Scattergood reiterate an "Outperform" rating on Potash, which closed Thursday at $174.14, gaining $5.52, or 3.27 percent.
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