Raymond James Cautious With Potash Corp. of Saskatchewan

The Financial Post reported today that Raymond James analyst Steve Hansen downgraded its rating for Potash Corp. of Saskatchewan (TSX:POT), although the analyst maintained a target stock price of US$38.50 for the company. Potash Corp. was changed from outperform to market perform, as Hansen believes that the stock is near its peak even with the positive outlook for the potash market. Potash Corp.’s stock is up almost 13 percent for the year so far, according to the Post.

As quoted in the publication:

In support of the promising outlook for potash, the analyst highlighted robust domestic shipments so far this year, steadily declining inventories and rising prices. This “evolving trifecta” seems to have caught many investors off guard. Yet with Potash Corp. trading at 17.9x 2015 consensus estimates, the stock is at the high end of its five-year historical valuation range.

Hansen stated:

We have elected to move to the sidelines until further macro visibility and/or a more attractive entry point emerges.

Click here to read the full Financial Post article.