Goldman Sachs is upgrading its prior Neutral rating on Potash Corp. (NYSE: POT) to a new BUY rating. It is also calling for a 29% stock upside from here with a new $180.00 target.
- Ken Heebner of CGM has been a bull behind Potash Corp.as well. On September 28, 2007 he touted this stock on CNBC as one hehad been a believer in (and owned for some time). Shares were around$105 then. Potash closed at $143.41 yesterday and is indicated up at anew high around $148 in pre-market activity.
Goldman Sachs does note that shares have already seen a huge run-up, but they believe that further upside remains based on constant upward earnings revisions because Potash has the ability to raise prices due to strong demand and tight supply. Goldman notes that record global grain prices will allow pricing momentum to remain into 2008.
The estimates for fiscal 2008 have been raised from $5.50 EPS to a new $6.60 EPS, and fiscal 2009 estimates have been raised from $6.50 EPS to $8.50 EPS.
Jon C. Ogg
December 27, 2007
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