UPDATE: Cantor Fitzgerald Downgrades Potash Ahead of Price Increases

Cantor Fitzgerald analyst Peter Prattas downgraded Potash Corporation of Saskatchewan

from Hold to Sell and lowered the price target from $36.00 to $31.00. Prattas noted the 16% gains in shares and suggested that this surge is unwarranted as potash prices continue to decrease. A lack of demand is evident and POT may have to curtail production, which will in turn, reduce earnings. Belaruskali offered India potash supply for $360/ton versus previous contract of $427/ton. The price in Brazil has also severely decreased from $450/ton to $370/ ton. Speculation that potash price will go below $300 remains high. Further, the Belaruskali- Urakali dispute will take time to resolve. Potash Corporation stated that it is “targeting maximizing revenue over the next 24 months and is not looking to win any markets from Belaruskali." Prattas commented that, “it is conceivable that a reunion of Belaruskali and Uralkali may be at the expense of its competitors at least until it has regained the market share it has given up.” Cantor Fitzgerald reduced the 2014 EPS estimates on shares of Potash from $2.67 to $2.38. Potash Corporation closed at $31.78 on Thursday.