Canada’s PotashCorp, Agrium upgraded on likely fertilizer rebound

07 December 2009 15:58  [Source: ICIS news]

HOUSTON (ICIS news)--Two Canadian fertilizer makers were expected to benefit in the near term from a rebound in the fertilizer industry, analysts said on Monday.

Potash Corporation of Saskatchewan (PotashCorp) and Alberta-based Agrium were both upgraded to buy from neutral by several investment banking firms, including Goldman Sachs and UBS.

Investors were likely underestimating the 2010 US demand recovery that could see large year-over-year increases in volume, a Goldman Sachs analyst said.

In early trading at the New York Stock Exchange (NYSE), PotashCorp moved at $120.92/share, up $3.86 -or 3.3% - from its Friday close.

UBS also raised its rating on Agrium to buy from neutral and raised its price target to $72 from $50. Agrium traded early Monday at $59.68/share, up $2.12 - or 3.7% - from its Friday close.

($1 = €0.67)

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By: Frank Zaworski
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