Dahlman Rose Reiterates Hold Rating on Potash (POT)

Dahlman Rose is out with a research report this afternoon, where it reiterates its Hold rating on Potash Corp. POT; it did not provide a price target for the stock. The Dahlman analysts said that they believe the net impact of the report presented by the Conference Board of Canada to the Government of Saskatchewan essentially gives the green light to BHP Billiton plc's BHP bid and effectively douses the aspirations of any bid emanating from a sovereign state investment group like Sinochem. Notably, the report said that it did not see any significant injury would be felt in employment, investment in the region, or loss of influence for Canadians on the Board of Directors or company management. Risks to their analysis include: (1) stronger than anticipated markets in potash and phosphate fertilizer prices and volumes, (2) significant increases in US natural gas prices which would put US producers at a competitive disadvantage with prices and margins, (3) prolonged period of high crop prices either through stronger than anticipated demand, supply disruptions, or weather related yield damage could induce higher than anticipated demand for fertilizers.