CITIGROUP REITERATES BUY, TOP-PICK ON POTASH
Citigroup analyst Brian Yu says Potash Corp. of Saskatchewan (POT) had repurchased a total of 10.9 million shares at the end of the second quarter, meaning nearly 5 million have been purchased so far in the third quarter.
Yu says management thinks the current stock price significantly undervalues the company's long-term potential. He notes the global economic situation, but says his recent analysis of nearly four decades of global grain demand data indicates that grain demand has rarely declined year-over-year absent a major supply shortfall.
He sees EPS of $13.00 for 2008 and $22.25 for 2009. He notes the recent sell off leaves POT shares trading at the lowest multiple in its public history. He has a $264 target price.
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