Canaccord Adams Analyst: Attractive Entry Point for Potash Corp

Canaccord Adams has reiterated its Street-high C$425 price target on shares of Potash Corp. of Saskatchewan (POT) after the fertilizer giant announced that its board of directors has approved an increase to its share buyback program. The company hiked the ceiling from 5% to roughly 10% of the public float.

In a research note, Canaccord analyst Keith Carpenter said:

Potash Corp. is taking advantage of the recent market downturn to re-invest its cash at depressed prices. The increased buyback underscores the company’s long-term potential and continued strength for the fertilizer market.

While acknowledging that Potash shares will likely remain volatile and trade in line with general market sentiment in the near term, Mr. Carpenter said the current price presents an attractive entry point.

He said:

We continue to believe that the company’s growth profile and earnings will be unmatched by its peers.