Goldman Sachs Expected 4Q Miss on Potash, Maintains Buy

Goldman Sachs has published a research report on Potash

after the company reported its 4Q earnings below consensus estimates. In the report, Goldman Sachs writes, "We had been braced for a positive reaction post 4Q given very low expectations, a likely positive management tone, and support near the $43 BHP offer price (now withdrawn). We continue to expect a strong US spring application season will be a positive driver for shares as robust farmer demand coupled with production cuts help draw down the current inventory overhang. Post-spring application our enthusiasm is tempered by a less favorable international demand backdrop, particularly in light of new Indian subsidies that we expect will be a dampener on consumption." Goldman Sachs maintains its Buy rating and $48 price target on Potash, which closed yesterday at $45.81.