PotashCorp’s Price Target before It Reports Its 2Q16 Earnings

PotashCorp (POT) was trading at $17.90 on July 21, 2016. Many of the estimates we’ve seen in this series have already been priced into the company’s share price.

Now, let’s look at analysts’ recommendations and price targets for the company’s share price over the next 12 months.

Out of the 26 Wall Street analysts surveyed by Bloomberg, 19% of analysts covering the PotashCorp still have “buy” recommendations for the stock. About 58% of analysts have issued “hold” recommendations, and only 23% have issued “sell” recommendations on the stock. Overall, PotashCorp’s stock has a “hold” rating.

Over the years, we’ve seen the company’s share price move in tandem with analysts’ recommendations.

Since the beginning of 2016, analysts have revised their next-12-month price target for PotashCorp downward. The consensus price target now stands at $15.70, which was revised downward from $23.00 at the beginning of this year.

The current price is trading at a premium to this price target. indicating that investors are more optimistic than analysts. We’ve observed that PotashCorp’s share prices have moved in tandem with analysts’ 12-month price targets. When analysts lowered their 12-month price targets, the share price also declined, and vice versa.

An alternative way to gain exposure to agricultural chemicals without investing directly in the company’s stock is by investing in the Materials Select Sector SPRD ETF (XLB). XLB invests approximately 13% of its portfolio in agricultural chemical companies, including Mosaic (MOS), Monsanto (MON), DuPont (DD), and Dow Chemicals (DOW).

To get more updates on fertilizer companies, you can visit our Agricultural Fertilizers page.