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Saturday, July 19, 2008

RBC's Analyst Raised Potash(POT) Target Price to $375 from $340 on Capacity Expansions

Regarding to ClusterStock, Potash Corp. has announced almost C$6 billion of projects that will increase its operating capacity by 7.1 million tonnes in the 2010-2015 timeframe.

RBC estimates that these projects could add approximately $90.00-$95.00 per share of incremental value. Based on the long-term supply and demand outlook, RBC believe PotashCorp's 18 million tonnes of effective operating capacity will eventually be required to meet growing demand for potash.

POT's continued capacity expansion is adding significant. Consequently, RBC Capital raised POT's price target to $375. Shares are Outperform rated.



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