Friday, April 25, 2008

Potash (NYSE:POT): JP Morgan raises 2009 EPS est way high - expect a positive reaction

JP Morgan is out with a major earnings change on Potash (NYSE:POT) this morning raising their 2009 EPS est to $18.50 from $11.75 a share (vs. consensus $12.70).

Firm's 2008 earnings estimate goes to $10.50 from $8.95 a share.

Notablecalls: Wow, this is probably one the largest EPS est raises I've seen in a long time. POT has gotten whacked over the past two days on apparent "sell-the-news" reaction to their fantastic results.

I suspect POT will be re-testing the $200 level today following JPM's call.

PS: Currently, RBC Capital has the Street high $300 tgt on POT. This tgt is based on their 2009 EPS of $15.02, which is over $3 lower than JPM's new EPS est. Fwiw.


Tom said...

You can't beat pricing power!
In addition seems like certain other countries would like to have a significant position in this co. just to be able to have some say when contract negotiations come around.

Mr Wolf said...

NC, what's your take on CF? Citi says that they would buy the weakness:

Our Take – We expect CF shares to trade down at the open due to the earnings miss. Since the company is executing well with costs coming in lower expected and weather is presumably beyond their control, we would be buyers on weakness. It remains our Top-Pick and we see upside to Street estimates spot DAP prices of $1,000/ton flow through to earnings later in the year.

notablecalls said...

time to buy this one was when it was down 18pts in after mkt. no edge here. sorry.