UPDATE: Canaccord Genuity Downgrades Potash Corporation of Saskatchewan to Hold on Industry Outlook
Canaccord Genuity reduced its rating on Potash Corporation of Saskatchewan (NYSE: POT) from Buy to Hold and cut its price target from $48 to $43.
Canaccord Genuity said, "We have lowered our rating on the shares of Potash Corp to a HOLD from Buy previously and have lowered our target price to US$43 (from US$48 previously), based upon a 12.5x multiple to our blended 2013E/2014E EPS of US$3.44. … The market is currently in oversupply, 25% of the annual consumption that is China and India is playing passively at the moment, and the spot markets can sense the near-term price erosion as a result and have become more aggressive in their price demands as well as more passive regarding their timing of purchases. Even though we have seen good US potash demand this fall, quarterly earnings have once again become quite volatile due to the lumpy nature of sales volumes in this environment."
Potash Corporation of Saskatchewan closed at $38.75 on Tuesday.
Latest Ratings for POT
|Nov 2015||JP Morgan||Maintains||Overweight|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.