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.
Showing posts with label Potash Market News. Show all posts
Showing posts with label Potash Market News. Show all posts
Wednesday, August 18, 2010
Friday, June 25, 2010
Goldman (NYSE:GS) Continues "Neutral" Rating on Potash (NYSE:POT)
This week Goldman Sachs (NYSE:GS) reiterated their "Neutral" rating on Potash (NYSE:POT), while also setting a price target of $131 a share.
Potash, which is the largest producer of potash fertilizer, has lagged the overall market, as they are down close to ten percent on the year, while the broader market has dropped five percent.
The weak economy continues to hinder the stock, as ongoing uncertainty and conflicting data, which could be interpreted more than one way, generated a sense of chaos and inability to project accurately as to where the economy is really going, and how much demand for products like the potash fertilizer the company produces will grow.
If the company does reach the projected $131 target, it's not going to be in 2010, as in the short term there's not a lot to be positive about in the current economic climate.
Potash was at $95.37 as of 3:39 PM EDT on Friday, a gain of $0.17 or 0.18 percent.
Potash, which is the largest producer of potash fertilizer, has lagged the overall market, as they are down close to ten percent on the year, while the broader market has dropped five percent.
The weak economy continues to hinder the stock, as ongoing uncertainty and conflicting data, which could be interpreted more than one way, generated a sense of chaos and inability to project accurately as to where the economy is really going, and how much demand for products like the potash fertilizer the company produces will grow.
If the company does reach the projected $131 target, it's not going to be in 2010, as in the short term there's not a lot to be positive about in the current economic climate.
Potash was at $95.37 as of 3:39 PM EDT on Friday, a gain of $0.17 or 0.18 percent.
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