Making adjustments to reflect the recent three-for-one stock split of Potash Corp. (NYSE:POT), Credit Suisse lowered their price target on the giant fertilizer company.
Credit Suisse said, "Our 2011 EPS estimate goes from US$9.63 to US$3.21, our 2012 EPS estimate goes from US$10.50 to US$3.50, and our 2013 EPS estimate goes from US$10.77 to US$3.59.
"We are adjusting our target price from US$189 to US$60."
Concerning the recent price increase implemented by Potash, Credit Suisse noted, "The potash markets remain extremely tight, and price increases are rising at a faster pace than we expected. Over the past week, POT announced a U.S. domestic price increase of US$45/short ton to US$560/ton that will take effect immediately. While we have not yet modeled in this latest price increase, we believe there is a strong likelihood that it goes through. Our channel checks indicate that there continue to be delays in domestic potash deliveries while some distributors are showing interest in booking summer volumes at this time.
"Meanwhile, in offshore markets, BPC recently announced a US$50/ton price increase to US$520-530/ton to take effect for May deliveries. Indian potash contracts have yet to be settled, but given rising spot prices, we expect Indian prices to settle well above our US$420/ton forecast for a 12-month contract."
Potash closed in New York at $61.60, gaining $1.60, or 2.67 percent.
No comments:
Post a Comment