Market Overview

UPDATE: Goldman Sachs Resumes Potash at Buy on Leverage to Turnaround in Fundamentals

Related POT
How Droughts Affect The Stock Market
Fast Money Picks For August 26

Goldman Sachs resumed coverage on Potash (NYSE: POT) with a Buy rating and a $46 price target.

Goldman Sachs said, "Following the recent announcement of production curtailments amounting to about 15% of annual capacity and broad-based inventory destocking, we believe potash fundamentals are approaching trough. Coupled with significant 2012 underperformance (POT -3% YTD vs. the S&P +13% and corn +14%) we believe risk/reward is increasingly attractive on a multi-year basis, with valuation now at 8.4x 2013 EV/EBITDA, a nearly 18% discount to the five-year average. Further, we believe the market is no longer giving POT credit for significant brownfield capacity expansions set to come online beginning in 2H2013 that should drive 20-25% K volume growth in 2014-15."

Potash closed at $40.90 on Tuesday.

Latest Ratings for POT

DateFirmActionFromTo
Sep 2014Cowen & CompanyDowngradesMarket PerformUnderperform
Aug 2014BGC PartnersDowngradesHoldSell
Jul 2014Alta Corp CapitalUpgradesUnderperformSector Perform

View More Analyst Ratings for POT
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

Related Articles (POT)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters