Citigroup raises ICL 2008 estimates on strong ferts

18 January 2008 13:49  [Source: ICIS news]

MUMBAI (ICIS news)--Citigroup raised its 2008 earnings per share (EPS) estimate on Israel Chemicals Limited (ICL) by 32% to $0.95 mainly due to the global increase in the prices of potash and phosphate fertilizers, the brokerage said on Friday.

“In response to the robust outlook and current spot prices, our colleagues in north America have raised their benchmark fertilizer forecasts. We have incorporated these and recent market announcements into our model,” the investment bank said.

“The results are increases of 20% and 9% for our potash and phosphate 2008 price assumptions for ICL."

Citigroup reiterated its buy rating and a price target of New Israeli shekels (NIS) 56 ($14.93) on the stock.

However, the brokerage said that the risks to its call include the unpredictable weather conditions that can have an impact on demand for fertilizers.

The Israeli government's right to block mergers, acquisitions or re-organisation in favour of public interest, may also affect the investment bank’s call.

($1 = NIS3.75)

By: Isha Jha
+65 6780 4359

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