PotashCorp (POT) is the largest producer of potash fertilizer and also produces nitrogen and phosphate fertilizers. On March 13, 2017, PotashCorp was trading 4.0% lower than at the beginning of the year.
The company’s Potash segment is vertically integrated and has been able to lower the cost of potash fertilizers over the years. This strategy has positioned the company to be one of the lowest-cost producers of potash, allowing it to benefit when potash prices rise.
On March 14, 2017, five of the 19 analysts covering PotashCorp (POT) recommended either a “strong buy” or a “buy” for the stock. In our previous month’s update, six analysts had given either a “strong buy” or a “buy” for the stock.
Twelve analysts have recommended a “hold” for PotashCorp stock, which remained unchanged from February. Two analysts recommended a “sell,” which also remained unchanged month-over-month.
For the next 12 months, Wall Street analysts have given PotashCorp a price target of $19.00 per share, which was raised from $18.94 in February 2017. On March 13, 2017, the company was trading at $17.36 per share, which is 8.6% 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.
In the next part of this series, we’ll look at analysts’ recommendations and their price target for Agrium (AGU).