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UPDATE: Cantor Fitzgerald Upgraded Potash to Hold and Lowered EPS Estimates

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In a report published Thursday, Cantor Fitzgerald analyst Peter Prattas upgraded Potash Corporation (NYSE: POT) from Sell to Hold and reduced EPS estimates for 2013 and 2014.

Potash released its 3Q results this morning. The company reported a 3Q13 EPS of $0.41 (equal to consensus) and noted that the average potash price was down 14 percent from 2Q or 29 percent YoY. Potash lowered the annual EPS guidance from a range of $2.45-$2.70 to $2.00-$2.20. Prattas agreed with this reduction, noting that the shares are now appropriately priced.

Cantor Fitzgerald reduced its 2013 EPS estimates from $2.26 to $2.15, and 2014 estimates from $2.30 to $2.00 following lower sales volume of fertilizer. The analyst commented, “We continue to believe that the current dividend is sustainable. The stock offers an attractive 4.7% yield and has the longer-term potential to trade much higher if and when a resolution to the BPC dispute occurs.”

Potash Corporation 3Q Conference call will be held at 1:00pm E.T. Investors and the general public may access this call at 1-877-881-1303 or 1-412-902-6510.

Potash closed at $31.70 on Wednesday.

Posted-In: Cantor Fitzgerald Peter PrattasAnalyst Color Upgrades Analyst Ratings


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