PotashCorp (POT), the largest producer of potash fertilizers in North America, has fallen 7.0% year-to-date (or YTD).
The concern that most analysts and investors have is the expectation of fertilizer prices’ improving in the near term.
Compared to March 2017, analysts’ recommendations for PotashCorp has remained unchanged in April. Of the 18 analysts surveyed by Reuters, two analysts have “strong buys,” and three have “buys” on the stock for the next 12 months. Eleven analysts have “holds” on the stock, while only two have “sell” recommendations on the stock.
These recommendations come from sell-side analysts, who usually issue fewer “sell” ratings on stocks. Later, we’ll also take a look at PotashCorp’s peers (XLB) Agrium (AGU), The Mosaic Company (MOS), and CF Industries (CF).
On April 10, 2017, analysts’ price target for PotashCorp was $19 per share, slightly lower than its level of $19.13 one month ago. PotashCorp closed at $16.9 per share, ~11% below its target price, on April 10.
PotashCorp is set to report its earnings on April 27, 2017. Market Realist will release its pre-earnings series for PotashCorp soon. In the meantime, you may want to read An In-Depth Analysis of PotashCorp and Its 2017 Outlook.
Next, let’s discuss analysts’ ratings and recommendations for Agrium.