Potash Co. of Saskatchewan (NYSE:POT) was downgraded by equities research analysts at Paradigm Capital from a “hold” rating to a “sell” rating in a research note issued on Tuesday, Marketbeat reports. They presently have a $13.50 price objective on the fertilizer maker’s stock. Paradigm Capital’s price target points to a potential downside of 28.76% from the company’s previous close.
The analysts wrote, “the fundamental backdrop has not improved and [he believes] could remain challenged through the year barring a material recovery in grain prices.”Related Link: Potash Oversupply Makes Investments Uncertain In Short Term, Morgan Stanley SaysChurchill, who has a price target of $13.50 on Potash Corporation, noted that potash prices remain depressed in an oversupplied market, and he does not foresee a material rebound even following completed contract negotiations and volume upticks.”Gauges of farmer spending and confidence are at, or near, all‐time lows, and U.S. farm net income is expected to drop another 3 percent in 2016. Hence, Potash’s view of flat global potash shipments in 2016 could be too optimistic if farmers choose to cut back on new purchases and ‘mine’ the soil this year,”
Source: American Banking and Market News