UPDATE: Goldman Sachs Resumes Mosaic at Buy on Valuation, Cash Return Acceleration

Goldman Sachs resumes coverage on Mosaic

with a Buy rating and a $68 price target. Goldman Sachs commented, "With (1) shares now trading at 5.9X CY2013 EBITDA vs. a 5-year average of 7.3X, (2) management having already cut November quarter volume guidance to reflect ongoing industry destocking, and (3) delayed China and India potash contracts expected to be resolved in the next several months providing a catalyst to improved industry fundamentals, MOS now satisfies our “Rule of 3” cyclical framework that gives us confidence to be aggressive buyers at current levels. We see 25% upside to our $68 12-month price target, which implies MOS trades at 7.5x CY2013 EV/EBITDA." Mosaic closed at $55.80 on Tuesday.