Seeking Alpha

Potash cut to Neutral at J.P. Morgan in valuation call

  • Potash (POT -0.7%) is downgraded to Neutral from Overweight at J.P. Morgan, citing valuation with shares near the firm's unchanged price target of $38.
  • JPM believes falling crop prices in anticipation of high domestic corn and soybean supplies could weigh on POT shares.
  • The firm prefers Mosaic (MOS -0.9%), as it has a lower valuation than POT and it is more exposed to increases in potash prices as it produces similar tonnage to POT with less than half the number of outstanding shares.
Comments (1)
  • Jack Cumming
    , contributor
    Comments (113) | Send Message
    I don't understand how anyone can evaluate POT or MOS without a good crystal ball as to the world market pricing of the commodity itself inthe wake of the demise of the cartel. I had kinda expected the cartel to reemerge in some form, but so far that is not in evidence. Any soothsayers out there?
    9 Jul 2014, 08:29 PM Reply Like
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