Seeking Alpha

Buy the dip in Potash says TD Securities

  • "Although 2014 potash sales guidance was disappointing ... the recent upward swing in global spot potash prices, the fact that Chinese buyers have concluded H1 delivery contracts, and that the global potash market is expected to report reasonable growth this year (+3.7%) suggest that the market is stabilizing and that as buyers adjust to the new market reality, demand should accelerate," says TD analyst Greg Barnes, upgrading Potash (POT +0.5%) to Buy with $37 price target.
  • Though lagged, demand does respond to price, he says, and encouraging signs thus far this year suggests demand will accelerate and a price floor has been found. His team sees Potash's 2014 potash sales coming in at the upper end of 8.2-8.6 million ton guidance.
  • Yesterday's earnings coverage
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