POT Upgrade Will Only Help
NEW YORK - Shares of Potash Corp. jumped on Thursday, after a Goldman Sachs analyst upgraded the fertilizer company's stock on higher potash prices.
The stock advanced $6.59, or 4.6 percent, to $150 in early morning trading and set an all-time high of $150.26 earlier in the session.
Goldman Sachs (nyse: GS - news - people ) analyst Edlain Rodriguez upgraded the stock to "Buy" from "Neutral" and said Potash will be able to raise prices because of strong demand and tight supply.
Rodriguez noted that Potash shares have risen sharply recently, but still thinks they have further to climb.
"Despite the strong run-up in the stock, we believe there is further upside potential, based on the constant upward earnings revisions that will likely continue in the near-term because of Potash's ability to raise prices due to strong demand and tight supply," Rodriguez wrote in a client note.
Rodriguez's new price target is $180, from $122 previously, which implies upside of 25.5 percent to Wednesday's $143.41 closing price.
Potash is a form of potassium used mostly in agriculture to fertilize crops and other plants.
