Everything that we’ve covered in this series has probably already been priced into PotashCorp’s (POT) stock price. The ongoing weakness in the agribusiness environment is evident in the beating that fertilizer companies have taken. These companies include Mosaic (MOS), Intrepid Potash (IPI), and CVR Partners (UAN). So how confident are analysts in their recommendations for PotashCorp?
As of January 18, 2017, six analysts have recommended either a “strong buy” or a “buy” for PotashCorp (POT) stock. The above graph shows that the confidence analysts have in PotashCorp has increased since August 2016. The majority still recommend a “hold” for the stock, and three are recommending a “sell” over the next 12-month period.
This confidence is echoed in the upward revision of PotashCorp’s price targets. In August 2016, the next 12-month price target for PotashCorp was $15.93, the lowest level last year. But it has risen gradually to $17.51 as of January 2017. As of the date of this writing, PotashCorp was trading above that price target at $18.20 per share. Are investors more confident than analysts?
If PotashCorp beats expectations when it releases its earnings on January 26, 2017, the stock could see an upward trend. Be sure to watch for Market Realist’s analysis following the earnings release. In the meantime, you can get updates on the agricultural fertilizer industry (SOIL) at our Agricultural Fertilizers page.