PotashCorp (POT) produces all three NPK (nitrogen, phosphorous, and potassium) crop nutrients but has a heavy exposure to potash fertilizers. The company released its 4Q16 earnings on January 26, 2017.
PotashCorp reported diluted EPS (earnings per share) of $0.07, which missed analysts’ estimate of $0.09. That was a 71.0% fall from $0.24 in 4Q15. For 2016, the company reported diluted EPS of $0.40 against $1.52 in 2015. It was a fall of 74.0% year-over-year. To find out more, be sure to read PotashCorp Reports 4Q16 Earnings: Stock Falls 3%.
As of February 21, 2017, six of the 20 analysts covering PotashCorp (POT) have recommended either a “strong buy” or a “buy” for the stock. The majority, or 12 analysts, have recommended a “hold,” which is less than 11 “hold” recommendations a month ago. Two analysts are recommending a “sell” over the next 12 months.
For the next 12 months, Wall Street analysts have given PotashCorp a price target of $18.94 compared to $17.60 a month ago. As of February 21, 2017, the company was trading at $18.66 per share, which is 1.5% below its target price for the next 12 months.
With more analysts recommending a “hold” and an upgrade in the price target, there’s some optimism for POT stock over the next 12 months.
Mosaic (MOS), Intrepid Potash (IPI), and Israel Chemicals (ICL) also have exposure to potash fertilizers (SOIL) (COMP-INDEX). In the next part of this series, we’ll look at analysts’ recommendations and their price target for Mosaic (MOS).