potash prospects produce high hopes

Citibank raised its price target on PotashCorp by $4 to $200 on the NY Stock Exchange
The StarPhoenix / Reuters January 29, 2011 4:02 AM
http://www.thestarphoenix.com/business/Potash+prospects+produce+high+hopes/4190180/story.html

Strong quarterly results by the Potash Corp. of Saskatchewan Inc., and a bullish outlook prompted several brokerages to raise their price targets on the world's largest producer of fertilizer.

Earlier this month, the United Nations food agency said food prices had risen to record highs in December and that some grains could climb even further, giving incentive for farmers to use more fertilizers.

"The potash cycle is gaining momentum. Global demand rebounded 22 per cent in 2010 after growers cut back severely on potash application in 2009," Citibank said in a note to clients.

Citibank raised its price target on PotashCorp by $4 to $200 on the New York Stock Exchange.

PotashCorp said its fourth-quarter profit more than doubled and its outlook for this year is even brighter as record-high world food prices fuel a surge in demand for fertilizer.

"Rising crop prices are providing strong incentive for farmers to maximize yield, which usually means applying more fertilizer," Deutsche Bank said.

The brokerage raised its price target on the stock by $35 to $185.

RBC Capital Markets also raised the price target of stocks for several companies in the agro business, including Agrium to $106 from $100 and PotashCorp to $204 from $170.