With urea and phosphate markets looking tight in 2011, UBS (NYSE:UBS) raised their price estimates on the two, and see Agrium (NYSE:AGU) benefiting from those expected changes.
UBS said, "Last week China confirmed a much expected increase in the time period during which it will levy high export taxes on urea and phosphate. This is part of a longer term trend to protect strategic resources, and UBS does not expect large fertilizer exports from China moving forward. UBS believes the global phosphate and urea markets are looking very tight into 2011 as rising costs could drive China to be a net importer of urea by 2012 and as phosphate markets see tightness despite the addition of new Saudi capacity...UBS has increased its 2010/2011/2012 prices for urea from $280/300/300 per mt to $310/340/345 per mt...We revised our 2011/2012 EPS estimates from $7.10/6.58 to $7.46/8.03 to reflect the price increases."
Agrium closed Friday at $84.31, up by $0.93, or 1.12 percent. UBS maintains a "Buy" rating on them, and raised their price target from $96 to $100.
Showing posts with label Phosphate. Show all posts
Showing posts with label Phosphate. Show all posts
Monday, December 6, 2010
Wednesday, November 17, 2010
Potash (NYSE:POT) Price Target Raised on Increased Fertilizer Outlook
Analysts' Upgrades, Downgrades
Barclays (NYSE:BCS) said their maintaining their "Overweight" rating on Potash Corp. (NYSE:POT), citing an expected increase in production of potash, along with price increased for phosphate and nitrogen.
"Earlier this week we re-instated our rating on Potash Corporation after being restricted on the company since August 17. We had the opportunity to revise our model so as to reflect the changes that have occurred in the fertilizer industry since we have been restricted and incorporate new company guidance...We have incorporated our new fertilizer price deck and recent company guidance into our model. Specifically, in addition to the price increase in nitrogen and phosphate, we have increased our potash production outlook for 2010 and 2011 and have also re-valued POT's equity portfolio based on previous day closing prices," Barclays said.
Potash was trading at $136.00, gaining $1.37, or 1.02 percent at 2:02 PM EST. Barclays increased their price target on the fertilizer giant from $130 to $160.
Barclays (NYSE:BCS) said their maintaining their "Overweight" rating on Potash Corp. (NYSE:POT), citing an expected increase in production of potash, along with price increased for phosphate and nitrogen.
"Earlier this week we re-instated our rating on Potash Corporation after being restricted on the company since August 17. We had the opportunity to revise our model so as to reflect the changes that have occurred in the fertilizer industry since we have been restricted and incorporate new company guidance...We have incorporated our new fertilizer price deck and recent company guidance into our model. Specifically, in addition to the price increase in nitrogen and phosphate, we have increased our potash production outlook for 2010 and 2011 and have also re-valued POT's equity portfolio based on previous day closing prices," Barclays said.
Potash was trading at $136.00, gaining $1.37, or 1.02 percent at 2:02 PM EST. Barclays increased their price target on the fertilizer giant from $130 to $160.
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