UPDATE: BMO Capital Markets Lowers PT on Potash Corporation of Saskatchewan on Positive Outlook

In a report published Friday, BMO Capital Markets analyst Joel Jackson reiterated an Outperform rating on Potash Corporation of Saskatchewan POT, but lowered the price target from $47.00 to $46.00.

In the report, BMO Capital Markets noted, “POT remains at Outperform, but we slightly lower our target price to $46 from $47. Global potash shipment recovery continues in markets outside of India. N.American potash prices have fallen, but Chinese port stocks are lowering (H2 Chinese contracts seem achievable unlike 2012). There could be some shelter that potash demand is driven more by ongoing consumption rather than cyclical capital / infrastructure spending (e.g., China) like some other commodities. We expect POT to continue to ratchet up its dividend (it now yields 3.5%) and possibly commence a share repurchase program, which could be jolt started if the company considered selling down its passive ICL stake.”

Potash Corporation of Saskatchewan closed on Thursday at $39.86.