RBC raises PotashCorp target on potash project

03 May 2007 18:04  [Source: ICIS news]

TORONTO (ICIS news)--RBC Capital Markets raised on Thursday its price target for the shares of Canada’s fertilizer major Potash Corporation of Saskatchewan (PotashCorp) due to the company’s planned expansion of potash production.

The analysts raised their target for PotashCorp by $7 to $225/share.

The shares were priced at $186.65/share, up 2.62%, in early Thursday afternoon trading in New York.

RBC said the $775m (€558.7M) debottlenecking and expansion at Cory, Saskatchewan, announced on Wednesday, was a low-cost project, compared with a greenfield development, that would bring an additional 1.2m tonnes/year of capacity online by 2010.

Assuming the incremental capacity was fully utilised, the Cory expansion project could contribute about 67 cents per share to PotashCorp’s earnings in its first full year of operation, according to RBC’s analysis.

($1.00 = €0.74)

By: Stefan Baumgarten
+1 713 525 2653

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