The bid for Potash (NYSE:POT) by BHP Billiton (NYSE:BHP) has resulted in Citigroup Inc. (NYSE:C) increasing their price target on the fertilizer giant to $170 a share, up from the prior target of $124 a share.
Citigroup's P.J. Juvekar wrote this in a note, "We are raising our price target to $170 per share which represents a 10% premium to POT's replacement value. We think top shareholders are unlikely to sell their stake at the current proposed price and that BHP will have to raise its bid for POT."
BHP has went hostile with their bid after being turned away by Potash, and is beginning a campaign aimed at Potash shareholders to sway them to support their offer, although it will end up being much higher than it currently is.
Citigroup also maintained their "Buy" rating on Potash.
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