Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Looking beyond the (fertilized) valley Add to ...

Choosing to look past its immediate problems, Desjardins Securities initiated coverage of Potash Corp. of Saskatchewan with a "buy" rating and a price target 22 per cent higher than Thursday's close.

"Fertilizer markets should recover in the short term because of curtailed production, low soil nutrient levels and rising foodstuff prices, and benefit in the long term from rising demand from developing countries, low inventories and a limited supply-side response," analyst John Redstone said.

Thursday the company reported profits were down 79 per cent from the same quarter a year ago. It also said that through its marketing agency it signed a deal to supply India with potash for $460 (U.S.) a tonne, well off the price it was able to charge last year.

His $127.35 price target puts him higher than the other 18 analysts who follow the shares, according to Bloomberg, who have an average target of $122.68. With Desjardins included, there are now 15 "buy" ratings on the shares and four "holds."

Follow us on Twitter: @GlobeInvestor

 
Live Discussion of POT on StockTwits
More Discussion on POT-T

For Globe Unlimited Subscribers

Business videos »

Most popular videos »

Highlights

Most Popular Stories