TD Newcrest Raises Price Target on Potash (POT) to $350

TD Newcrest raises its price target on Potash Corp. (NYSE: POT) 25% from $280 to $350. The firm maintains a Buy rating.

Following Potash's better-than-expected Q2 earnings and a boost to its FY08 guidance, the firm is adjusting estimates on the ag company: estimates on '08 phosphate pricing moves from $800 to $900/ton, while FY08 and FY09 EPS estimates move from $10.50 and $16.70 to $12.75 and $18.70, respectively. The Street is currently expecting Potash to report EPS of $11.67 for FY08 and $20.64 for FY09. The firm said the higher estimates comes amid "stronger liquid and feed pricing realizations for the remainder of this year and through ’09, which are not contained in our commodity industry forecasts for simplicity, but are material components of Potash's phosphate."

With shares of Potash trading around $200 this morning, the firm's new price target represents a potential gain of 75% from current levels.

Potash Corporation of Saskatchewan, Inc. engages in the production and sale of fertilizers, and related industrial and feed products in North America.

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