Potash Corp. advances as analyst boosts rating

Shares of fertilizer maker Potash Corp. of Saskatchewan gain after analyst hikes rating

NEW YORK (AP) -- Shares of Potash Corp. of Saskatchewan Inc., the world's largest fertilizer company, ticked higher Monday after a Citi Investment Research analyst boosted his rating on the stock.
Its stock rose $4.09, or 2.4 percent, to $173.97 in morning trading.

Brian Yu, who maintains a "Buy" rating and a $264 price target on the shares, added the stock to his "Top Picks Live" group in a client note.

The analyst said data released Friday shows that North American potash inventories fell 10 percent last month from June to a level that is 35 percent below its five-year average. A tighter supply of fertilizer helps lift its price.

Yu, who believes a 26 percent selloff since July 14 is overdone, said the stock has suffered along with materials and energy sectors as concerns mount about prospects for global growth.

He noted that fertilizer prices are rising and grain production is not cyclical as are industrial metals.

The current value of Potash Corp. of Saskatchewan Inc. shares is "discounting a far worse earnings scenario than fundamentals indicate," Yu said.