Analyst Raises Price Target on Potash Corp. of Saskatchewan on Strong Potash Pricing
NEW YORK (AP) -- Shares of Potash Corp. of Saskatchewan Inc. rose Monday, after an analyst hiked his price target by $45 on strong demand and pricing for potash, a fertilizer.
Goldman Sachs analyst Edlain Rodriguez said global demand for fertilizer is strong, with potash and phosphate prices rising.
"Potash producers recently announced substantial price increases in the international markets -- India, Brazil and Southeast Asia -- reflecting robust demand globally and scarcity of product," Rodriquez wrote in a client note.
Pricing for potash has been supported by such factors as rising demand for ethanol, made from corn.
"Given the underlying strength in commodity prices, farmers are still more concerned about maximizing yield and profits rather than controlling fertilizer costs," he added.
Rodriguez's $225 price target implies upside of 31.7 percent to Friday's $170.89 closing price.
Shares rose $2.39, or 1.4 percent, to $173.28 Monday, having hit a new 52-week high of $178.05 earlier in the session.
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